Tennessee Bans Cryptocurrency ATMs Over Scam Concerns
Summary
Tennessee will ban cryptocurrency ATMs starting July 1 after reports linked the kiosks to scams. The article cites 13,460 FBI complaints involving $389 million in losses in 2025 and lawsuits targeting major operators.
Key points
- Tennessee Gov. Bill Lee signed a law banning cryptocurrency ATMs effective July 1.
- The article says the ban makes Tennessee the second state to restrict the kiosks; Indiana outlawed them in March.
- A Tennessee sheriff described scammers directing victims to withdraw cash, scan ATM QR codes, and convert funds into Bitcoin sent to criminal wallets.
- The FBI recorded 13,460 cryptocurrency ATM complaints in 2025, involving $389 million in reported losses; more than two-thirds of the losses affected people over 60.
- Massachusetts, Iowa, and Washington, D.C. have taken legal action against kiosk operators, alleging links to scams.
Article Details
- Event Type
- Tennessee enacted a law banning cryptocurrency ATMs, effective July 1, in response to concerns that scammers use the kiosks to convert victims’ cash into cryptocurrency.
- Impact
- The ban restricts cryptocurrency ATM operations in Tennessee. Law enforcement reports that scammers use the kiosks in government-impersonation, tech-support, romance, and pig-butchering scams, directing victims to deposit cash that is converted to Bitcoin and sent to criminal wallets. The FBI recorded 13,460 cryptocurrency ATM complaints involving $389 million in losses in 2025; more than two-thirds of the losses affected people over 60. Lawsuits and investigations have alleged that major operators facilitated or profited from scam-related transactions.
People
Vendors
AthenaState lawsuits and investigations target major kiosk operators like Bitcoin Depot, CoinFlip, and Athena for allegedly facilitating scams.Bitcoin DepotThe 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.CoinFlipThe 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.