CHEYENNE, Wyo., Feb 17, 2026, 04:14 (MST)
- Wyoming legislators are considering tighter regulations for crypto kiosks, following police reports of scams at “crypto ATM” machines that have cost victims millions.
- Virginia lawmakers have passed a crypto kiosk regulation bill, adding fresh consumer protections, and sent it on to the governor’s desk.
- Kentucky lawmakers are weighing a bill to toughen restrictions, as experts point out that older adults often find themselves targeted.
Wyoming legislators are looking at fresh regulations on cryptocurrency kiosks following reports from Gillette police that scammers made off with over $3 million from locals using “crypto ATMs” last year.
These proposals show up as crypto kiosks pop up in convenience stores and other shops, offering scammers a quick leap from cash to crypto. Once money’s moved to a digital wallet—often while the victim’s getting instructions live—reversing the transfer gets tricky.
Crypto ATM scams took a $246 million bite out of U.S. wallets in 2024, according to the report. Advocates warn state regulators are struggling to keep pace. Lawmakers in Virginia and Kentucky have been pushing legislation to establish licensing and transaction requirements to help curb the fraud.
Detective Alan Stuber of the Gillette Police says his team, along with the Campbell County Sheriff’s Office, looked into upwards of 75 incidents in 2025 where locals lost money after being coerced into feeding bills into crypto ATMs, only for the funds to vanish. “Over probably $3 million have been lost,” Stuber said. Wyomingpublicmedia
Losses cropped up across the state, not just in isolated spots. In Cheyenne alone, cases added up to roughly $650,000 over a 16-month stretch last year. Sheridan, for its part, reported around $1.5 million lost over two years, the report said. It also counted about 45 crypto ATMs installed throughout Wyoming.
Tom Lacock, who serves as associate state director for AARP Wyoming, says these scams usually kick off with a bogus crisis — a supposed IRS issue, missed jury service, or maybe a threat to cut your electricity. The goal? Push victims “into a very frenzied place,” Lacock said, so they hand over fees that sometimes reach 20% per transaction.
While AARP Wyoming stopped short of asking for an outright ban, Lacock pressed legislators to mandate licensing via the state banking division and impose strict caps on fees plus transaction amounts. His proposal: set daily limits at $1,000 and monthly totals at $10,000, pointing out that scammers are likely to target the same victims repeatedly.
Republican state Rep. Ken Clouston’s bill, which would set up a licensing framework for virtual currency kiosk operators, is headed for a second vote in the Wyoming House, according to the report. Lawmakers tacked on amendments: a 48-hour cancellation window for new users, 24 hours for existing ones, plus a $2,000 daily limit for the first three days after a new user’s first transaction.
Virginia lawmakers last week approved a bill now headed for the governor’s desk that would impose statewide rules on crypto kiosk operators—mandating licensing, reporting, and refund protocols, and prohibiting companies from advertising the kiosks as ATMs. Delegate Michelle Maldonado, the bill’s sponsor, argued that the resemblance to ATMs creates confusion. “They look like ATMs,” Maldonado said, adding that scammers take advantage of this to solicit crypto payments under false pretenses, including supposed debts, legal claims, or romance scams. 29News
Virginia’s proposal calls for daily and monthly limits on transactions, mandatory ID checks, and prominent warning labels, according to Maldonado. The measure would also introduce a 48-hour waiting period for first-time users—an attempt to catch fraud before funds disappear. Maldonado pointed to a Southwest Virginia resident who lost $15,000, and noted that scams account for about 7% of the industry’s activity.
House Bill 380 is on the table in Kentucky, aiming to tighten rules around crypto ATMs—think licensing for operators, mandatory ID checks, and daily limits on transactions, according to Daniel Roe, who handles advocacy and community engagement at AARP Kentucky. Roe pointed out, “If someone wanted to deposit $22,000 into a crypto ATM at a gas station, they could do that today,” but under the proposed bill, daily deposits would max out at $500. Wmky
According to the Kentucky report, FBI figures put losses from scams linked to crypto kiosks at over $300 million in 2025, with most victims older than 60. Roe pointed out that workers near these machines know the signs—a customer gripping cash or a bank envelope, phone pressed to their ear, visibly shaken.
Still, there are holes. Someone glued to the phone with a scammer for days could slip through waiting periods and dollar caps, or dodge limits by splitting deposits among several machines. How tough enforcement gets will depend on how closely states end up watching licensing and compliance as the bills wind their way through legislatures.
