Delaware moves to ban Crypto ATMs entirely amid crackdown on scam networks

In a major development, Delaware lawmakers have taken an aim at cryptocurrency ATMs, advancing legislation that would make the state one of a growing number to impose an outright ban on the machines in the wake of mounting complaints about their role in financial scams targeting vulnerable residents.

The House Economic Committee voted on June 9 to forward House Bill 441, sponsored by Representative Cyndie Romer and Senator Spiros Mantzavinos, which would establish a total ban on the installation, ownership, or operation of crypto kiosks within the state. Any existing kiosks would have to be removed within 90 days of the bill taking effect. Violators face injunctive relief, a civil penalty not exceeding $10,000, and a private right of action for damages.

Romer, who chairs the House Technology and Telecommunications Committee, did not mince words about the industry. “These kiosks reduce digital currency to a predatory cash grab,” she said. She also pushed back on the notion that the machines serve a legitimate market need.

“Regular crypto traders generally do not use crypto ATMs due to their much higher fees, which can be upwards of 20% of the value of the transaction, versus the 0.4% to 1% in fees for online exchanges. There is no reason to support a business structure that enables scammers to extort money from our most vulnerable populations,” Romer said.

Mantzavinos framed the bill as part of a broader regulatory responsibility. “As cryptocurrency becomes more prevalent in our society, we must work to properly regulate this new digital asset market,” he said.

The data driving the legislation paints a troubling picture. The FBI’s Internet Crime Complaint Center received more than 13,400 complaints involving crypto kiosks, with losses exceeding $388 million. In Delaware alone, there were 181 complaints involving crypto and 255 involving crypto wallets in 2025, with more than half of those complaints coming from individuals over the age of 50. The FBI has noted that scammers typically lure victims with investment opportunities before directing them to deposit crypto into the scammer’s wallet through a kiosk.

Delaware’s move follows the New Jersey Senate Commerce Committee’s unanimous vote earlier this week to advance its own crypto ATM ban to the full chamber. At least 20 states have enacted some form of restriction on crypto kiosks since 2023, with 13 new laws passed in 2026 alone. Indiana was the first state to impose a total ban, acting in March, followed by Tennessee in April and Minnesota in May.