Tennessee Gov. Bill Lee signed a law banning cryptocurrency ATMs effective July 1 amid growing concerns that scammers use the kiosks to convert victims’ cash into untraceable digital assets. The move follows similar actions in other states and comes as lawsuits and FBI data spotlight widespread fraud tied to major kiosk operators like Bitcoin Depot and CoinFlip. #BitcoinDepot #CoinFlip
Keypoints
- Tennessee will ban cryptocurrency ATMs starting July 1, making it the second state to restrict the kiosks.
- Law enforcement reports link crypto ATMs to frauds such as government impersonation, tech support, romance, and pig butchering scams.
- Scammers allegedly instruct victims to withdraw cash, scan QR codes at ATMs, and immediately convert funds to Bitcoin sent to criminal wallets.
- The FBI recorded 13,460 crypto ATM complaints in 2025 totaling $389 million, with over two-thirds of losses affecting people over 60.
- State lawsuits and investigations target major kiosk operators like Bitcoin Depot, CoinFlip, and Athena for allegedly facilitating scams.
Read More: https://therecord.media/tennessee-bans-cryptocurrency-atms-over-scams