Massachusetts AG and Allies Ramp Up Fight Against Crypto Scams: Regulations, Lawsuits, and Calls for ATM Bans
Massachusetts Attorney General Andrea Joy Campbell is leading a multi-front battle to shield residents from the surging tide of cryptocurrency scams, combining lawsuits, regulatory pushes, and public awareness campaigns amid billions in nationwide losses.[1][3]
Explosive Growth in Crypto Fraud
Cryptocurrency-related scams cost Americans a staggering $9.3 billion in 2024, marking a 66% increase from the prior year, according to data highlighted by AARP Massachusetts.[1] In the Bay State, the dangers are starkly real, with scammers exploiting unregulated crypto ATMs—also known as kiosks—popping up in convenience stores and gas stations.[3]
These machines allow users to convert cash into crypto, but criminals pressure victims to use them after building trust through romance scams, fake government impersonations, or tech support frauds.[4][6] Once the transaction completes, funds vanish into irreversible blockchain transfers, leaving victims with no recourse.[3]
AG’s Lawsuit Targets Bitcoin Depot
Campbell’s office filed a high-profile lawsuit against Bitcoin Depot, a major kiosk operator, alleging that company insiders flagged nearly all large transactions as scam-related.[3] Between August 2023 and January 2025, over 80% of customers spending $10,000 or more at Massachusetts Bitcoin Depot kiosks were linked to fraudulent activity, accounting for nearly 60% of the company’s state revenue during that period.[3]
The suit underscores how kiosks, lacking traditional banking safeguards, have become a “wild west” for fraud, as described by Middlesex County Sheriff Peter J. Koutoujian.[3] “Day after day, residents across the Commonwealth are losing money in scams involving unregulated cryptocurrency kiosks,” Koutoujian stated, praising efforts to ban them.[3]
AARP Backs Regulations, Now Pushes for Bans
Initially, AARP Massachusetts supported “An Act Relative to Preventing Fraud and Establishing Regulations on Certain Virtual Currencies,” which would license kiosk operators as money transmitters, mandate transaction receipts with hashes, disclose fees transparently, display scam warnings, impose daily limits, offer full fraud refunds, and cap exorbitant fees—some as high as 35%.[1]
Testimony from AARP volunteers, Essex County District Attorney Paul Tucker, Sheriff Koutoujian, and State Rep. Richard Wells (D-Milton) bolstered the bill.[1] However, with scams persisting, AARP has escalated to calling for an outright ban on crypto ATMs.[3]
“A ban on crypto ATMs is now the most effective way to stop the ongoing damage,” said Jen Benson, AARP Massachusetts state director. “Despite our efforts to push for straightforward consumer protections, these machines continue to operate without safeguards, causing people to lose their life savings.”[3]
State’s Evolving Regulatory Framework
Massachusetts has methodically built crypto oversight since 2014 guidance on bitcoin ATMs, culminating in Governor Maura Healey’s signing of Bill H4840 in January 2025.[5] The focus remains consumer protection and clear rules for businesses, including aggressive actions by Secretary William Galvin’s Securities Division against unregistered offerings like Blue Vase Mining’s unauthorized crypto mining shares, which resulted in fines and rescission orders.[5]
Earlier, in 2023, the AG sued CreditCoin.CC over a “pig-butchering” scheme mimicking a legitimate coin, using false ICO promises under the Consumer Protection Act.[5] The state also surveys operators like CoinFlip for compliance.[7]
Spot Bitcoin ETFs and Investor Alerts
Beyond scams, the Massachusetts Securities Division issued alerts on “spot bitcoin exchange-traded products” (ETPs or ETFs) approved by the SEC in January 2024, urging investors to scrutinize these volatile assets.[2]
Practical Safety Tips from Authorities
The AG’s Crypto Awareness Brochure warns against mixing romance with investment advice online, fake government demands for crypto, and tech support scams pushing ATM use.[4] Key advice includes:
- Never send crypto to strangers unmet in person.[6]
- Ignore unknown calls/texts; verify claims via official channels.[6]
- Report incidents to local police, the ATM operator, FBI’s IC3, and the AG’s office.[6]
- Avoid “recovery” services demanding upfront fees—only government agencies recover funds, never for payment.[6]
- Change passwords if personal info was shared.[6]
In a Fraud Talk Tuesday webinar with the AG’s office, experts emphasized not answering unknown numbers and always using verified agency contacts on bills or statements.[6]
Broader Implications and Ongoing Vigilance
As crypto evolves, Massachusetts balances innovation with safeguards, from kiosk regs to ETF warnings. AARP’s shift to ban advocacy signals frustration with half-measures, while lawsuits like Bitcoin Depot’s aim to hold operators accountable.[1][3]
Residents are urged to stay vigilant: crypto’s allure masks high risks, especially via kiosks. For complaints, contact the AG at (617) 727-2200 or file online.[7]
This crackdown reflects national trends but positions Massachusetts as a leader in consumer defense against digital-age fraud.[1][5]