Crypto ATMs Seized in London Amid Money Laundering Investigation
According to Cointelegraph, seven cryptocurrency ATMs were confiscated, and two individuals were apprehended in southwest London on Thursday. The arrests were made on suspicions of money laundering and operating an unauthorized cryptocurrency exchange. This operation was spearheaded by the UK Financial Conduct Authority (FCA) in collaboration with the Metropolitan Police, as stated by the financial regulatory body. Since January 2021, any cryptocurrency business in the UK must be registered with the FCA and adhere to anti-money laundering regulations. Currently, there are no legally operating crypto ATMs in the UK, and running one without FCA registration constitutes a criminal offense. Therese Chambers, the executive director of enforcement and market oversight at the FCA, emphasized the seriousness of operating illegal crypto ATMs or exchanges, warning of severe consequences. The suspects have been interviewed and released under investigation as inquiries continue.
In the United States, particularly in Wisconsin, where crypto kiosks are becoming increasingly prevalent, a legislative proposal has been introduced to address concerns related to fraud, hidden fees, deceptive pricing, and scams associated with these kiosks. State Senator Kelda Roys and State Representative Ryan Spaude have put forward a bill aimed at establishing safeguards against these issues, which have led to significant financial losses. Roys highlighted the necessity for accurate information about the risks associated with certain technologies, transparency regarding costs and fees, and legal protections to prevent scams and criminal exploitation. The legislation comes in response to a surge of scams involving digital currencies and crypto kiosks in the state.
Phishing scams are among the most common types of fraud involving crypto ATMs, where victims are deceived into sending cryptocurrency to fraudsters impersonating law enforcement, government officials, or utility companies. These scams often target older and more vulnerable individuals. A report by the FBI indicated that victims lost approximately $247 million to scams involving crypto ATMs in 2023. For the proposed bill to become law, it must pass through various legislative stages, including committee reviews and approvals in both the Assembly and Senate, before receiving the governor's signature. On a federal level, a similar bill was introduced in the US Senate in February 2025 by Senator Dick Durbin. If enacted, the "Crypto ATM Fraud Prevention Act" would mandate warnings on kiosks nationwide, impose limits on transactions for new customers, and offer full refunds to scam victims who report fraud within 30 days. Data from Coinatmradar reveals that the US hosts 78.4% of the world's Bitcoin ATMs.
