FBI Warns Of Rising Bitcoin ATM Fraud: Americans Lose Over $330 Million In 2025

bitcoinistPublished on 2025-12-31Last updated on 2025-12-31

Abstract

The FBI warns of a significant rise in Bitcoin ATM fraud, with Americans losing over $333.5 million by November 2025. This represents a dramatic increase from the $250 million lost in 2024. With over 45,000 machines in the U.S., these kiosks allow users to convert cash to crypto, but funds are nearly impossible to recover once sent. An AARP director states that requesting cryptocurrency is now the "No. 1 preferred method of criminals." Law enforcement is taking action, including a case against a major ATM provider, Athena Bitcoin, which is accused of profiting from undisclosed fees linked to fraud. In response, at least 17 states have moved to regulate or ban these machines to protect consumers, particularly older adults who are often targeted.

The Federal Bureau of Investigation (FBI) has recently raised alarms about the increasing number of cryptocurrency scams, particularly those involving Bitcoin ATMs.

Crypto Requests Now Top Choice For Criminals

According to a report from ABC News, the latest statistics from the FBI indicate a “clear and constant rise” in fraudulent transactions connected to cryptocurrency kiosks, a trend the bureau notes is “not slowing down.”

In 2024, scammers perpetrated approximately $250 million in losses, which was more than double the amount reported in the previous year. By November 2025, that number had surged to $333.5 million.

There are over 45,000 Bitcoin ATMs across the US allowing users to convert cash into crypto and send it to wallets globally. However, once the money is sent, experts warn that recovery is nearly impossible, making the machines appealing tools for fraudsters.

“Requesting crypto is now the No. 1 preferred method of criminals,” stated Amy Nofziger, director of fraud victim support at AARP (formerly American Association of Retired Persons), in an October interview with ABC News. “It is a huge problem.”

Law enforcement has taken notice of the escalating fraud. In September, the attorney general’s office in Washington, D.C., filed a lawsuit against Athena Bitcoin, a major provider of Bitcoin ATMs in the country.

The suit alleges the company pocketed “hundreds of thousands of dollars in undisclosed fees on the backs of scam victims.” 93% of the transactions made through Athena’s machines in the district were allegedly linked to outright fraud, with victims often being older individuals, the median age being 71.

Athena Bitcoin has strongly refuted these allegations, stating that it implements robust safeguards against fraud, including clear instructions and consumer education. The company also remarked, “Just as a bank isn’t held responsible if someone willingly sends funds to someone else, Athena does not control users’ decisions.”

17 States Move To Regulate Or Ban Bitcoin ATMs

In response to the rising tide of scams, AARP has called for stricter regulations on Bitcoin ATMs, suggesting measures such as daily deposit caps to protect consumers.

At least 17 states have enacted legislation in recent years to regulate these Bitcoin ATM machines in the country, while some local governments have moved toward banning them entirely.

New Jersey state Senator Paul Moriarty, who sponsored a bill to prohibit Bitcoin ATMs in the state, expressed strong concerns regarding their impact.

“These machines are nothing more than conduits for fraud and criminal activity. Period,” he stated. “There’s no other use for them, because if you wanted to buy cryptocurrency you could buy it somewhere else for less.”

In defense of their operations, companies like Bitcoin Depot have stated that while scams do occur, they represent only a small portion of overall transactions.

The 1-D chart shows BTC’s slight recovery on Tuesday. Source: BTCUSDT on TradingView.com

At the time of writing, Bitcoin was trading at $88,613, marking a slight gain of 1.5% in the past 24 hours and 2% in the past seven days. However, it is still unable to surpass and consolidate above the key $90,000 mark, which is acting as the most important resistance wall in the near term.

Featured image from DALL-E, chart from TradingView.com

Trending Cryptos

Related Questions

QWhat is the total amount of losses Americans have suffered from Bitcoin ATM fraud by November 2025, according to the FBI?

AAmericans have lost over $333.5 million by November 2025.

QWhy are Bitcoin ATMs considered appealing tools for fraudsters?

ABecause once the money is sent, recovery is nearly impossible.

QWhich company was sued by the attorney general’s office in Washington, D.C., and what was a key allegation?

AAthena Bitcoin was sued, with the key allegation being that the company pocketed 'hundreds of thousands of dollars in undisclosed fees on the backs of scam victims.'

QHow many states have taken legislative action to regulate or ban Bitcoin ATMs in response to the scams?

AAt least 17 states have enacted legislation to regulate or ban Bitcoin ATMs.

QWhat did New Jersey state Senator Paul Moriarty claim is the primary use of Bitcoin ATMs?

AHe claimed that 'These machines are nothing more than conduits for fraud and criminal activity. Period.'

Related Reads

A 'Overlooked' Market Event: Joint US-Japan-South Korea Intervention, Rare US Treasury Involvement, and Bessent's Quiet 'Market Rescue'?

Summary: The United States, Japan, and South Korea executed their largest coordinated foreign exchange intervention in nearly 30 years. The action targeted depreciation pressure on the Japanese yen and South Korean won. This move is seen as a significant effort by the US to stabilize the financial markets of its key allies and prevent the spillover of risks. Key details: * Japan reportedly intervened on July 30 using approximately 8.45 trillion yen (about $52.8 billion). South Korean authorities also intervened that day, selling dollars to support the won. * Notably, the US Treasury Department intervened directly in yen markets for the first time in roughly 30 years. The New York Fed, reportedly acting on behalf of the Treasury, sold euros to buy yen via Goldman Sachs and Morgan Stanley on July 31. Analysts view the use of the euro-yen pair as a way to alleviate yen pressure without adding selling pressure to the US dollar. * Prior to the action, the New York Fed conducted "rate checks" on both USD/JPY and EUR/JPY, a newer signaling tool that falls between verbal and physical intervention. The intervention is interpreted as going beyond traditional currency stabilization. Analysts, such as Michael Hartnett of Bank of America, suggest it resembles a "Price Keeping Operation" for the AI era. The core US objectives are perceived to be: 1. Preventing rapid yen depreciation from triggering a sharp rise in Japanese government bond yields. 2. Containing financial stress from spreading across Asian markets like South Korea and Japan. 3. Reducing the risk of disorderly capital flows impacting the US bond market. This coordinated action underscores the importance of Japan and South Korea as critical partners in the US semiconductor and AI supply chain. Stabilizing their financial markets is seen as vital to mitigating risks to the broader tech industry and the US market itself. The intervention coincides with market pressures, including the KOSDAQ index hitting a low since October 2022. While seen as a move to control volatility, some analysts caution it may not fundamentally reverse existing market trends.

marsbit4m ago

A 'Overlooked' Market Event: Joint US-Japan-South Korea Intervention, Rare US Treasury Involvement, and Bessent's Quiet 'Market Rescue'?

marsbit4m ago

Will the Federal Reserve Definitely Raise Interest Rates in September? How Will Cryptocurrencies and US Stocks Bear the Pressure?

In early August 2024, market expectations for a September Federal Reserve rate hike surged dramatically, from below 50% to over 80%, driven by renewed inflation concerns. This shift followed a contentious July FOMC meeting where a 9-3 vote to hold rates revealed a growing hawkish faction advocating for an immediate hike, citing prolonged above-target inflation. The key catalyst is escalating conflict near the Strait of Hormuz, which has pushed oil prices up approximately 20% in July, threatening to reignite inflation. The next critical data point is the July CPI report on August 12th; a hot reading could solidify hike expectations. For crypto assets, particularly Bitcoin, this represents near-term pressure. Bitcoin continues to exhibit high-beta, risk-on characteristics, making it sensitive to tightening liquidity and higher opportunity costs. However, historical precedent suggests that if a hike is perceived as the cycle's end rather than its start, the negative impact may be brief, with markets quickly pivoting to anticipate future rate cuts. U.S. stocks, especially crypto-linked equities like Coinbase and high-valuation tech stocks, face amplified volatility. Higher rates increase discount rates in valuation models, pressuring growth stocks. This coincides with a pivotal tech earnings season where investor focus has shifted from massive AI capital expenditures to demonstrable revenue and cash flow generation. Companies with negative cash flows and weak growth narratives could see severe pressure if a September hike materializes, as financing costs would rise. Key indicators to watch include oil prices, upcoming inflation data, and Fed commentary at events like the Jackson Hole symposium.

Odaily星球日报4m ago

Will the Federal Reserve Definitely Raise Interest Rates in September? How Will Cryptocurrencies and US Stocks Bear the Pressure?

Odaily星球日报4m ago

From South Korea to the United States: Blue-Collar Jobs Are Becoming Increasingly Popular, Thanks to AI

AI is reshaping the labor market's value proposition. The traditional four-year college degree is losing its appeal as a guaranteed career path, while skilled blue-collar trades like electricians, welders, and plumbers are experiencing historic demand and wage premiums. This shift is driven by dual pressures: AI's displacement of certain white-collar roles and a booming need for physical infrastructure and data center construction. Data confirms the trend. In the U.S., vocational school revenue surged, and a significant portion of recent layoffs are AI-related. Surveys show a majority of Gen Z adults plan to pursue blue-collar work, citing better job security against AI automation. Vocational education interest has exploded recently. Experts cite a psychological shift as younger generations seek tangible, AI-resistant careers and avoid high student debt. In many cases, salaries for skilled trades now match or exceed those requiring a bachelor's degree. In South Korea, semiconductor vocational high schools boast near-total employment, with graduates securing high-paying roles at companies like Samsung. The shortage is structural, exacerbated by a retiring baby boomer workforce and massive infrastructure projects. Companies like JPMorgan Chase, Meta, and Lowe's are investing heavily in training programs. However, overcoming historical stigma and a "perception gap" around trade careers remains a key challenge to closing the talent gap.

marsbit1h ago

From South Korea to the United States: Blue-Collar Jobs Are Becoming Increasingly Popular, Thanks to AI

marsbit1h ago

Trading

Spot

Hot Articles

What is $BITCOIN

DIGITAL GOLD ($BITCOIN): A Comprehensive Analysis Introduction to DIGITAL GOLD ($BITCOIN) DIGITAL GOLD ($BITCOIN) is a blockchain-based project operating on the Solana network, which aims to combine the characteristics of traditional precious metals with the innovation of decentralized technologies. While it shares a name with Bitcoin, often referred to as “digital gold” due to its perception as a store of value, DIGITAL GOLD is a separate token designed to create a unique ecosystem within the Web3 landscape. Its goal is to position itself as a viable alternative digital asset, although specifics regarding its applications and functionalities are still developing. What is DIGITAL GOLD ($BITCOIN)? DIGITAL GOLD ($BITCOIN) is a cryptocurrency token explicitly designed for use on the Solana blockchain. In contrast to Bitcoin, which provides a widely recognized value storage role, this token appears to focus on broader applications and characteristics. Notable aspects include: Blockchain Infrastructure: The token is built on the Solana blockchain, known for its capacity to handle high-speed and low-cost transactions. Supply Dynamics: DIGITAL GOLD has a maximum supply capped at 100 quadrillion tokens (100P $BITCOIN), although details regarding its circulating supply are currently undisclosed. Utility: While precise functionalities are not explicitly outlined, there are indications that the token could be utilized for various applications, potentially involving decentralized applications (dApps) or asset tokenization strategies. Who is the Creator of DIGITAL GOLD ($BITCOIN)? At present, the identity of the creators and development team behind DIGITAL GOLD ($BITCOIN) remains unknown. This situation is typical among many innovative projects within the blockchain space, particularly those aligning with decentralized finance and meme coin phenomena. While such anonymity may foster a community-driven culture, it intensifies concerns about governance and accountability. Who are the Investors of DIGITAL GOLD ($BITCOIN)? The available information indicates that DIGITAL GOLD ($BITCOIN) does not have any known institutional backers or prominent venture capital investments. The project seems to operate on a peer-to-peer model focused on community support and adoption rather than traditional funding routes. Its activity and liquidity are primarily situated on decentralized exchanges (DEXs), such as PumpSwap, rather than established centralized trading platforms, further highlighting its grassroots approach. How DIGITAL GOLD ($BITCOIN) Works The operational mechanics of DIGITAL GOLD ($BITCOIN) can be elaborated on based on its blockchain design and network attributes: Consensus Mechanism: By leveraging Solana’s unique proof-of-history (PoH) combined with a proof-of-stake (PoS) model, the project ensures efficient transaction validation contributing to the network's high performance. Tokenomics: While specific deflationary mechanisms have not been extensively detailed, the vast maximum token supply implies that it may cater to microtransactions or niche use cases that are still to be defined. Interoperability: There exists the potential for integration with Solana’s broader ecosystem, including various decentralized finance (DeFi) platforms. However, the details regarding specific integrations remain unspecified. Timeline of Key Events Here is a timeline that highlights significant milestones concerning DIGITAL GOLD ($BITCOIN): 2023: The initial deployment of the token occurs on the Solana blockchain, marked by its contract address. 2024: DIGITAL GOLD gains visibility as it becomes available for trading on decentralized exchanges like PumpSwap, allowing users to trade it against SOL. 2025: The project witnesses sporadic trading activity and potential interest in community-led engagements, although no noteworthy partnerships or technical advancements have been documented as of yet. Critical Analysis Strengths Scalability: The underlying Solana infrastructure supports high transaction volumes, which could enhance the utility of $BITCOIN in various transaction scenarios. Accessibility: The potential low trading price per token could attract retail investors, facilitating wider participation due to fractional ownership opportunities. Risks Lack of Transparency: The absence of publicly known backers, developers, or an audit process may yield skepticism regarding the project's sustainability and trustworthiness. Market Volatility: The trading activity is heavily reliant on speculative behavior, which can result in significant price volatility and uncertainty for investors. Conclusion DIGITAL GOLD ($BITCOIN) emerges as an intriguing yet ambiguous project within the rapidly evolving Solana ecosystem. While it attempts to leverage the “digital gold” narrative, its departure from Bitcoin's established role as a store of value underscores the need for a clearer differentiation of its intended utility and governance structure. Future acceptance and adoption will likely depend on addressing the current opacity and defining its operational and economic strategies more explicitly. Note: This report encompasses synthesised information available as of October 2023, and developments may have transpired beyond the research period.

1.4k Total ViewsPublished 2025.05.13Updated 2025.05.13

What is $BITCOIN

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of BTC (BTC) are presented below.

活动图片