Minnesota Warns Residents to Avoid Cryptocurrency ATM Scams as Losses Surge - Coinedict

Minnesota Attorney General Keith Ellison has issued a consumer alert urging residents to avoid cryptocurrency ATMs, citing a sharp rise in scams that exploit the machines’ anonymity and irreversibility.

The warning comes amid a rapid expansion of crypto ATMs across the state. While the machines themselves are legal, scammers frequently coerce victims into sending funds through them because transactions are difficult to trace and nearly impossible to reverse, Ellison said.

Data from the U.S. Federal Trade Commission shows reported losses tied to crypto ATM scams jumped from $12 million in 2020 to $250 million in the first half of 2025. The median loss from these scams is about $10,000, far exceeding the typical median loss of $497 across all scam types.

Ellison emphasized a key red flag: any request from a government agency to pay via a crypto ATM is almost certainly a scam. His office has received numerous complaints from Minnesotans who were pressured into urgent payments for fake fines, taxes, or fees.

Victims are urged to report incidents immediately to local law enforcement or the Minnesota Department of Commerce. In some cases, refunds may be possible if the scam is reported within 72 hours of account creation, and victims should also contact the ATM operator without delay.

The alert is part of the Attorney General’s ongoing Scam Stopper initiative aimed at protecting consumers as crypto-related fraud grows alongside broader adoption.