ST. PAUL, Minn. (FOX 9) – ATMs that deal in cryptocurrency could be banned in Minnesota soon.

Crypto ATM ban considered

The backstory:

Police across the state are urging lawmakers to pass a DFL ban on those kiosks that convert cash to crypto.

They say the machines are used extensively by criminals trying to scam people or to hide the proceeds of their crimes. In 2024, lawmakers passed a law to regulate the machines. Still, last year Attorney General Keith Ellison warned of an increase in crypto ATM scams.

At a hearing last month, Faribault police reported their residents had lost $500,000 since 2022 from crypto ATM scams. Woodbury Detective Lynn Lawrence told lawmakers about a victim she helped who had completed at least ten Bitcoin transactions over six months at crypto ATMs. 

By the numbers:

Right now there are about 350 crypto kiosks in the state. They are often located in gas stations and grocery stores.

Their owners say this proposed law goes too far, but they’d support a law requiring full refunds for any customers who were victims of fraud.

How crypto ATMs work

Dig deeper:

Crypto ATMs allow users to turn fiat money into digital currency or vice versa. Users typically have to scan their identification to be able to use the machines and then the currency is sent to a wallet of their choosing.

However, the machines are increasingly used by scammers who convince elderly victims to use the ATMs to use the machines to send them money. Once the money is sent, it’s impossible to recoup the funds from the scammers.

Exchanges can blacklist scammers’ wallets and block them from withdrawing ill-gotten funds. However, most scammers will use “mixers” which wash the funds through a service that makes the coins hard to track or find ways around large exchanges like decentralized exchanges and peer-to-peer exchanges.

The other side:

At a hearing on Tuesday, Larry Lipka, counsel for digital currency platform CoinFlip, which operates 50 crypto ATMs in Minnesota, recognized scams are an issue, but pointed out scamming won’t disappear if crypto kiosks are banned.

“While I understand that scams are a problem, scams are a problem everywhere in this country,” said Lipka, “They are a problem for crypto kiosks, they are a problem for wire transfers, and they are a problem for gift cards. But no one is here today saying we should ban exchanges or gift cards or wire transfers because scammers use them.”

Instead of a ban, Lipka urged lawmakers to instead consider smarter and better controls for kiosks. According to Lipka, back in 2024, CoinFlip pushed for further protections when the previous crypto ATM bill was being discussed, arguing that legislation didn’t go far enough.

The Minnesota Vikings have several positions that need attention after last season when the team went 9-8 and was third in the NFC North.

The team has informed running back Aaron Jones and defensive tackle Javon Hargrave that they will be released barring a trade, according to NFL insider Adam Schefter, and ESPN’s Jeremy Fowler said they are expected to release defensive tackle Jonathan Allen due to salary cap constraints. The reported transactions are in addition to over a dozen free agents who played for Minnesota last season.

Quarterback is a position that many Vikings fans have been talking about this offseason. Some question whether J.J. McCarthy will again lead the team’s offense. He missed 24 of 34 possible career games — the majority of which have been due to injury.

“We’re still looking at a quarterback who’s started 10 games. Ten out of, what, a possible 34 in two years? Not the ideal path for a young quarterback to develop on the field,” Coach Kevin O’Connell said at a news conference in January. “But I thought he did. I thought he did some really good things.”  

The organization will be making moves without a general manager for at least the next six weeks after it fired Kwesi Adofo-Mensah in January. Owners Mark and Zygi Wilf said in a statement that the Vikings will conduct “a thorough search” for their next general manager after the draft. Executive Vice President of Football Operations Rob Brzezinski will lead the team until then, according to the Vikings.

WCCO is tracking every move Minnesota makes in free agency, including cuts, signings, retirements and potentially trades.

Ryan Kelly, center

Four-time Pro Bowl selection Ryan Kelly is retiring after 10 seasons in the league, the Vikings said. The center signed with Minnesota last year after playing nine seasons with the Indianapolis Colts. He dealt with three concussions last season and only started eight games for the Vikings.

James Pierre, cornerback

NFL Network reporter Cameron Wolfe said Monday that the Vikings agreed to terms with cornerback James Pierre, a move that will add depth to the team’s secondary. The former Pittsburgh Steelers player will get a two-year, $8.5 million deal with $3.7 million guaranteed, Wolfe, who cited Pierre’s agent Toney Scott, said.

Eric Wilson, linebacker

Eric Wilson is staying in Minnesota after the team announced Monday that they’ve reached a three-year, eight-figure deal with the 31-year-old linebacker. The NFL Network’s Mike Garafolo says the contract is worth $22.5 million — with $12.5 million “fully guaranteed.”

Wilson is in his second stint with Minnesota. He was first signed as an undrafted rookie in 2017 and spent four seasons with the Vikings.

Full list of Vikings free agents

• RB Ty Chandler
• LS Andrew DePaola
• CB Fabian Moreau
• WR Jalen Nailor (agreed to terms on three-year, $35 million deal with Las Vegas Raiders, per Schefter)
• T Matt Nelson
• CB Jeff Okudah
• OLB Bo Richter
• QB Brett Rypien
• RB Zavier Scott
• T Justin Skule
• TE Ben Sims
• S Harrison Smith
• DB Tavierre Thomas
• QB Carson Wentz
• P Ryan Wright (signing a four-year, $14 million deal with New Orleans Saints, per Schefter)

Minnesota also tendered the contracts of linebacker Ivan Pace Jr. and defensive lineman Jalen Redmond.