Key Takeaways
- Grosse Pointe Farms proposes strict transaction caps for new bitcoin ATM users to combat rising scams.
- FBI data shows $246.7 million in crypto ATM scam losses in 2024, heavily impacting seniors.
- States like Nebraska and Illinois have enacted laws mandating caps, fraud warnings, and operator licensing.
A wave of bitcoin ATM-related scams has prompted Grosse Pointe Farms, a suburb of Detroit, to draft an ordinance imposing transaction limits on new users of digital-asset kiosks.
Under the proposed rule, new customers would be restricted to $1,000 per 24 hours and $5,000 over 14 days, in an attempt to curb losses from scams that exploit unfamiliarity with bitcoin.
Recent cases
The move follows several high-profile cases, including an elderly resident who lost $20,000 by sending cash through a bitcoin ATM in response to a scam.
According to FBI data, 10,956 complaints involving crypto ATMs were filed in 2024, with reported losses reaching $246.7 million. Of these, individuals over 60 accounted for nearly 43.5% of losses.
Council member Lev Wood explained the urgency:
“Where there’s money, there’s opportunity.”
No ATMS in city limits
Despite having no bitcoin ATMs within city limits, Grosse Pointe Farms aims to act preemptively, citing similar actions in other states.
Nebraska, Rhode Island, and Illinois have enacted laws mandating transaction caps, fraud warnings, and in some cases, licensing for operators.
Nebraska requires crypto ATM operators to post fraud notices, cap daily transactions for new customers, and offer refunds for reported fraud within 30 days.
Industry responds
Industry players such as Bitcoin Depot argue that overly strict caps may drive fraudsters to structure smaller transactions to avoid detection.
The company claims its machines display up to nine scam warnings before allowing a transaction and that it provides 24/7 support and law enforcement cooperation.
AARP and other advocacy groups support licensing, daily limits, mandatory fraud warnings, and transparent fee disclosures as standard requirements. While Michigan currently lacks regulation for bitcoin ATMs, the push for stricter oversight is gaining momentum as scam losses mount nationwide.
