Frank Rondel
Fraudsters exploited bitcoin ATM machines to defraud Americans of more than $333 million in 2025, marking a significant rise compared to previous years, reports Customreceipt. The bureau’s recent figures indicate a persistent increase in fraudulent transactions conducted through cryptocurrency kiosks, a trend that shows no signs of slowing. In 2024, losses attributed to similar scams reached approximately $250 million, which had already represented a doubling from the year prior. From January through November 2025 alone, authorities recorded $333.5 million in losses linked to bitcoin ATM scams.
There are currently over 45,000 bitcoin ATMs across the United States, allowing users to deposit cash and send it instantly to a digital wallet anywhere globally. Experts note that once these transactions are completed, recovering the funds becomes extremely difficult, making the machines particularly appealing for criminal activity. Amy Nofziger, AARP’s director of fraud victim support, stated in October that “requesting crypto is now the No. 1 preferred method of criminals,” emphasizing the scale of the problem.
Law enforcement agencies and regulators have taken note of the rising threat. In September, the office of the Washington, D.C., attorney general filed a lawsuit against Athena Bitcoin, one of the nation’s largest bitcoin ATM operators, alleging that the company “pocketed hundreds of thousands of dollars in undisclosed fees on the backs of scam victims.” According to the suit, 93% of transactions on Athena’s devices in the district were linked to fraud, with the median age of victims being 71 years.
Athena Bitcoin has strongly denied these allegations, stating that it implements “strong safeguards against fraud including transparent instructions, prominent warnings and consumer education.” The company added, “Just as a bank isn’t held responsible if someone willingly sends funds to someone else, Athena does not control users’ decisions.”
Advocates, including AARP, have called for stricter regulations to protect consumers from bitcoin ATM scams, such as limiting daily deposit amounts. At least 17 states have enacted legislation regulating these machines, and some municipalities have opted for outright bans to curb fraud.
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