Indiana Becomes First State to Ban Crypto ATMs Amid Rising Scam Losses, Sidelining Nearly 900 Machines

By Perplexity News Staff | March 17, 2026

In a landmark move to combat rampant cryptocurrency scams, Indiana has become the first state in the U.S. to impose a statewide ban on crypto ATMs, effectively sidelining approximately 800 to 900 machines across the state.[1][4] The emergency legislation, signed into law by Gov. Mike Braun on March 9, 2026, took immediate effect, prompting swift enforcement actions by local police departments.[1][3]

Escalating Fraud Drives Drastic Action

The ban stems from a surge in fraud reports linked to these kiosks, which allow users to buy or sell digital currencies like Bitcoin using cash, much like traditional ATMs. Evansville Police Department Sergeant Nathan Vancleave reported that crypto ATM fraud complaints have doubled each year for the past four years, with local losses exceeding $400,000 and an average individual loss of $11,000.[1] State Rep. Wendy McNamara (R-Dist. 76), who co-authored the bill with input from the Evansville Police Department and AARP, noted that in just three months since introducing the measure, scammers defrauded local residents of about $40,000.[1]

Scammers typically target vulnerable populations, especially the elderly, with schemes involving fake emergencies. “Typically, your elderly would get a call saying they missed jury duty or have a grandson in jail, and you need to go to this cryptocurrency kiosk and put in $10,000 to $20,000,” McNamara explained.[1] AARP Indiana legislative director Ambre Marr emphasized the national scope of the issue, stating it has cost Americans billions, and hailed Indiana’s ban as providing “the strongest protections in the country.”[3][4]

From Regulation to Total Ban

Originally, House Bill 1116 aimed to regulate the kiosks through licensing, customer identity verification, transaction limits, and fee caps. However, during Senate hearings, operators argued these rules would drive them out of business, while law enforcement and retiree advocates highlighted the machines’ role in scams and potential for money laundering.[2][4] Sen. Scott Baldwin (R-Noblesville), chair of the Senate’s insurance and financial institutions committee, spearheaded an amendment for a complete ban, approved in a bipartisan 7-0 vote.[2]

“I can think of no substantial legitimate reasons to warrant the kiosks,” Baldwin stated, adding they serve as “havens for money laundering and tax evasion.”[2][4] The full Senate passed the measure unanimously, and Gov. Braun signed it, noting additions that made it “signable.”[3] Unlike some bills he let pass without signature, Braun actively endorsed this one as a shield for Hoosier families.[3]

Immediate Enforcement and Industry Response

As of March 11, 2026, Evansville police began notifying shop owners to unplug the machines, focusing on independently owned units to shield businesses from liability.[1] Major operator Bitcoin Depot voluntarily remote-deactivated its machines statewide.[1] Indiana boasts over 70 such ATMs in Evansville alone, contributing to the near-900 statewide total now offline.[1][4]

“Indiana families deserve strong protections from fraud, especially as criminals adapt their tactics to new technologies.”
— Ambre Marr, AARP Indiana Legislative Director[3][4]

National Implications and Ongoing Efforts

Indiana’s pioneering ban sets a precedent, with over a dozen states enacting regulations and nearly 30 pursuing legislation.[4] In Maine, regulators secured a $1.9 million settlement from Bitcoin Depot to compensate victims defrauded between 2022 and 2025.[4] Fraud prevention advocates, including AARP, vow to continue pushing for safeguards nationwide, underscoring that “we aren’t done.”[4]

Baldwin clarified the ban targets kiosks, not cryptocurrency itself: “I can transfer money that I’ve paid taxes on into crypto using my phone, so I don’t want the crypto folks to think that we’re trying to kill crypto.”[2] Nonetheless, the move disrupts a niche industry, though proponents argue public safety outweighs business interests.

Crypto ATM Scam Statistics in Indiana

Metric	Details
Fraud Reports Trend	Doubled annually for 4 years[1]
Evansville Losses	Over $400,000 total; avg. $11,000 per victim[1]
Recent Local Scams	$40,000 in 3 months[1]
Machines Affected	~800-900 statewide; 70+ in Evansville[1][4]

Broader Context in Hoosier Legislation

The crypto ATM ban contrasts with other recent bills, such as Senate Enrolled Act 91 extending needle exchange programs in six counties, which Braun allowed to become law without his signature, criticizing it as treating symptoms rather than root causes.[3] This fiscal session, lawmakers balanced consumer protections with economic considerations, ultimately prioritizing anti-fraud measures.

As Hoosiers adjust to the new reality without crypto kiosks, the legislation underscores growing scrutiny of fintech innovations amid persistent scam threats. Law enforcement continues to urge vigilance, with digital alternatives remaining available for legitimate crypto transactions.

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