Ripple: Citi, JPMorgan Chase, Goldman Sachs and Japan's SBI are the most active participants in the TradFi blockchain business

The U.S. Treasury’s Financial Crimes Enforcement Network issued an urgent notice on August 4, warning financial institutions about cryptocurrency kiosk fraud after victims lost $247 million through Bitcoin ATM scams in recent years. FinCEN Director Andrea Gacki emphasized in a press release that “criminals are relentless in their efforts to steal money from victims” while exploiting emerging technologies like crypto kiosks. Today, FinCEN issued a Notice urging financial institutions to be vigilant in identifying and reporting suspicious activity involving convertible virtual currency kiosks. https://t.co/5eHKcqP0oC pic.twitter.com/W6QJ8xNZOc — Financial Crimes Enforcement Network (FinCEN) (@FinCENnews) August 4, 2025 Elderly Victims Bear Disproportionate Impact as Losses Surge Tenfold The alert specifically centered on how scammers disproportionately target older adults through tech support scams, customer service impersonations, and bank impostor schemes using Bitcoin ATMs as payment portals. Federal Trade Commission data revealed that fraud losses surged from $12 million in 2020 to $114 million in 2023, with incomplete figures showing $66 million lost in the first half of 2024 alone. Source: Federal Trade Commission Victims over 60 account for more than two-thirds of all Bitcoin ATM fraud losses, with median losses reaching $10,000 per incident, according to FTC research. The agency described Bitcoin ATMs as a “payment portal for scammers” while noting that older adults are three times more likely than younger demographics to report losses. The Treasury notice comes as jurisdictions worldwide implement restrictions on cryptocurrency ATMs, including New Zealand’s complete ban and Australia’s enhanced monitoring requirements. U.S. states are pursuing various approaches, from daily transaction limits to licensing requirements for operators. Global Crackdown Intensifies as Fraud Losses Mount New Zealand implemented a comprehensive ban on cryptocurrency ATMs alongside a $5,000 cap on international cash transfers as part of sweeping Anti-Money Laundering reforms. 🚫 New Zealand has unveiled a set of reforms, including a nationwide ban on cryptocurrency ATMs and a $5,000 cap on international cash transfers. #ATMs #Crypto https://t.co/LrL9HTJVOq — Cryptonews.com (@cryptonews) July 9, 2025 Associate Justice Minister Nicole McKee cited in the report 157 crypto ATMs nationwide that police identified as major channels for drug money laundering. Similarly, Australia’s AUSTRAC introduced stricter rules , including tighter cash limits and enhanced monitoring for crypto ATM operators. Tasmania Police revealed that the top 15 crypto ATM users in the region lost a combined AUD 2.5 million to fraudsters, with AUD 592,000 deposited directly into cryptocurrency machines. Back in June, California’s Department of Financial Protection and Innovation fined Seattle-based Coinme $300,000 for violating daily transaction limits and failing to provide required disclosures. The penalty included $51,700 in restitution to an elderly California resident exploited through crypto scams. Additionally, that same month, Spokane, Washington, banned Bitcoin ATMs entirely , while other jurisdictions implemented licensing requirements and transaction monitoring. 💸 Elderly Americans have lost millions of dollars after being pressured by scammers into sending them money through Bitcoin ATMs #CryptoATMs #Fraud https://t.co/l4mvYADUGg — Cryptonews.com (@cryptonews) June 28, 2025 Illinois has also mandated that cash-to-crypto conversions record destination addresses to help investigators track fraudsters. The state’s approach seeks to create audit trails, while criminals increasingly use obfuscation tools to cover tracks. Federal Legislation Targets Protection for Vulnerable Users Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act , establishing $2,000 daily limits for new users and $10,000 limits over 14-day periods. The legislation requires operators to conduct detailed conversations for transactions exceeding $500 and provides refund rights when police reports are filed within 30 days. The bill places responsibility on ATM operators to monitor suspicious activity and intervene when transactions appear fraudulent. New users would face lower initial limits, while established customers could access higher transaction amounts after verification periods. I’m on the Senate floor announcing new legislation—my Crypto ATM Fraud Prevention Act—to help stop fraud at crypto ATMs. Watch. https://t.co/JZqjfYkhat — Senator Dick Durbin (@SenatorDurbin) February 25, 2025 Durbin, who is retiring in 2026 after decades of service, warned that “enough is enough” regarding senior citizens losing life savings to ATM scams. He noted that 30,000 crypto ATMs operate across the country, creating widespread vulnerability to fraud. The Federal Trade Commission identified common scam patterns, including government impersonation, fake tech support calls, and business impersonation schemes. Victims are typically instructed to withdraw cash and deposit it into Bitcoin ATMs, while scammers maintain phone contact to guide transactions. FinCEN’s notice urged financial institutions to identify red flag indicators and report suspicious activity involving cryptocurrency kiosks. The guidance emphasized that while kiosks provide legitimate consumer access to digital assets, inadequate Bank Secrecy Act compliance by operators exacerbates illicit activity risks. The Treasury warning coincides with growing institutional recognition that cryptocurrency ATMs require enhanced oversight to prevent exploitation while preserving legitimate access for consumers seeking digital asset services.