Minnesota lawmakers are considering a bill to completely ban crypto ATMs due to a spike in scams targeting elderly residents. The proposed legislation, introduced by Rep. Erin Koegel, would prohibit all physical machines that allow cryptocurrency purchases with cash, expanding on previous state measures that added transaction limits and licensing requirements. Minnesota would become the first U.S. state to enact a complete ban, following examples set in other countries like New Zealand. Law enforcement reports indicate significant financial losses among seniors, with one resident losing half her monthly income to repeated Bitcoin scams. In 2023, U.S. victims reported $333 million in losses linked to crypto ATMs. There are about 430 such machines in Minnesota, mostly in Minneapolis. ATM operators acknowledge scammers’ misuse but argue that criminals exploit various methods. State officials highlighted the difficulty of recovering funds, while some cities’ police chiefs called the machines a public safety risk. Meanwhile, Bitcoin Depot, the largest North American operator, is increasing identity checks after legal action from the Massachusetts Attorney General, who accused the company of enabling fraud and removing safeguards. Bitcoin Depot denies wrongdoing and claims ongoing cooperation with authorities.