Connect with us

North Dakota

North Dakota bill aiming to regulate crypto kiosks, prevent fraud gets mixed reactions

Published

on

North Dakota bill aiming to regulate crypto kiosks, prevent fraud gets mixed reactions


BISMARCK — A bill in the North Dakota House of Representatives aims to regulate cryptocurrency kiosks by limiting deposits, capping fees and requiring fraud detection measures in response to rising concerns over financial scams.

House Bill 1447

would regulate virtual currency kiosks, also known as cryptocurrency kiosks or crypto ATMs. The proposal would license cryptocurrency kiosk operators in North Dakota, limit daily deposits to $1,000, cap fees at 3%, require blockchain analytics to detect suspicious activity and mandate refunds for new customers within 30 days.

Simply put, crypto kiosks allow people to insert cash, turn it into cryptocurrency and deposit it into an electronic wallet. It also allows anyone with an electronic wallet to turn cryptocurrency into cash and withdraw it.

Advertisement

More than $6 million was stolen through cryptocurrency fraud in North Dakota in 2023, and the FBI received over 5,500 complaints involving crypto kiosks nationally in 2023, according to AARP.

Rep. Steve Swiontek, R-Fargo, said scammers are directing people to withdraw money from their bank accounts and put it into the crypto ATMs, where it is deposited directly into the electronic wallets of the scammers.

Gate City Bank board chair Steve Swiontek

Contributed / Stacy Kennedy, Gate City Bank

Advertisement

Swiontek chairs the board of Gate City Bank and has worked in banking for over 40 years.

He told a story about a person in North Dakota who received a message from a fraudster posing as a federal employee saying they would purchase child sexual abuse material using the person’s identity, open offshore accounts in the person’s name and that their family would be in danger if they did not comply with the fraudster’s directives. The person took out nearly $25,000 and gave it to the fraudster using a crypto kiosk. The person almost gave the fraudster another $25,000, but after a conversation with a neighbor who worked in law enforcement, they found out they had been scammed.

A fraud investigator for First Western Bank, Jacob Rued, said another way fraudsters often work is to refer to the crypto ATMs as “federal safety lockers” and tell people they are scamming that their money is not safe in their bank and needs to be deposited in the “federal safety locker.”

“If you ever hear that term, or someone you love says that term to you, you and they are being scammed,” Rued said. “That term does not exist.”

Josh Askvig, state director of AARP North Dakota, said that elderly North Dakotans are especially vulnerable to these crypto scams.

Advertisement

Rep. Ben Koppelman, R-West Fargo, questioned the necessity of caps on daily transactions and fees because he believes it would unnecessarily burden a growing industry. He said there are legitimate reasons for people to use the kiosks because if there weren’t, there wouldn’t be successful, publicly traded companies based on them.

“I just don’t believe that there would be a publicly traded company that’s investing in something that’s 99% scams,” Koppelman said. “And that somehow that’s got across (past) all the regulators that deal with the publicly traded companies.”

Koppelman suggested the implementation of a cap on a user’s first five transactions to protect first-time users from scams without impacting those who regularly use the kiosks.

Rued said without the caps on daily transactions, the bill would be useless.

He shared a story about a person who experienced fraud in Minnesota when he took $50,000 out of his bank account, intending to put it all into the kiosk and give it to the scammer’s electronic wallet, but was stopped at depositing $2,000 into the kiosk by Minnesota’s regulations. After he was stopped, he realized he was being scammed and did not give the remaining $48,000 to the fraudster.

Advertisement

“Without that (cap), he would have lost all $50,000,” Rued said. “Now, could he report that to us the next day? Sure. But in all reality, the money is gone. If you know anything about the blockchain and crypto — I mean the whole essence and principle of it is, once it’s out there, the government can’t go get it. No one can exercise control over it.”

Rue noted he was in favor of the cap on fees, as well. The companies that operate the kiosks are “profiting off the losses of these victims,” he said.

Representatives of two companies that operate cryptocurrency kiosks said they were in support of licensing operators of kiosks but not caps on fees and daily transactions.

Director of Government Relations at Bitcoin Depot Ethan McClelland said the cap on transaction fees and daily transaction amounts would make operating in North Dakota unsustainable and drive responsible operators of crypto kiosks out of the state.

The transaction limits “are encouraging scammers to spread transactions around, and it’s hindering our efforts and law enforcement’s efforts to combat fraud,” McClelland said.

Advertisement

Rued disagreed.

“To be perfectly frank with you,” Rued said, “with no disrespect to them, it’s laughable to me that the transaction limit is going to increase the fraud or it’s going to make it more difficult to investigate. My opinion would be the exact opposite — it’s going to decrease fraud.”

Koppelman said the bill will be worked on in a committee before a recommendation is voted on.





Source link

Advertisement

North Dakota

North Dakota approves certificate of site compatibility for 400MWh BESS from NextEra Energy Resources

Published

on

North Dakota approves certificate of site compatibility for 400MWh BESS from NextEra Energy Resources






North Dakota approves certificate for 400MWh BESS from NextEra- Energy-Storage.News




















Advertisement



Advertisement





Skip to content



Source link

Continue Reading

North Dakota

Armstrong opens application period for Governor’s Band/Orchestra and Choral programs

Published

on

Armstrong opens application period for Governor’s Band/Orchestra and Choral programs


BISMARCK, N.D. – Gov. Kelly Armstrong today announced the opening of the application period for school, community and church bands, orchestras and choirs across North Dakota to apply to serve as the Governor’s Official State Band/Orchestra Program and Choral Program for the 2026-2027 school year. 

The Governor and First Lady will select the two groups from the applications received based on musical talent, achievement and community involvement. The governor may invite the groups to perform at official state functions held throughout the 2026-2027 school year, including the State of the State Address in January 2027 at the Capitol in Bismarck. 

Interested groups should submit an application with a musical recording to the Governor’s Office by 5 p.m. Monday, May 4. The Governor’s Band/Orchestra Program and Governor’s Choral Program will be announced in May. Please complete the application and provide materials at https://www.governor.nd.gov/governors-chorus-and-bandorchestra-program-application. 



Source link

Advertisement
Continue Reading

North Dakota

Greenpeace seeks new trial, claiming jury pool biased in case over Dakota Access Pipeline

Published

on


Greenpeace has asked for a second trial after a judge entered a $345 million judgment against the organization in a landmark case brought by the developer of the Dakota Access Pipeline.

The case “threatens to result in one of the largest miscarriages of justice in North Dakota’s history,” attorneys for the environmental group wrote in a brief filed last week.

After a three-week trial roughly a year ago, a Morton County jury directed Greenpeace to pay Energy Transfer about $667 million, finding the environmental group at fault for inciting illegal acts against the company during anti-pipeline protests in North Dakota in 2016 and 2017 and for publishing false statements that harmed Energy Transfer’s reputation.

Greenpeace denies Energy Transfer’s claims and maintains that it brought the lawsuit to hurt the environmental movement.

Advertisement

Southwest Judicial District Judge James Gion in October slashed the jury’s award to $345 million, though he didn’t finalize the award until late February.

Greenpeace is now taking steps to fight the judgment, which includes its motion for a new trial.

The environmental group’s reasons for the request include claims that the jury instructions and verdict form contained errors, and that Energy Transfer was allowed to present unfair and irrelevant evidence to jurors. The group also alleges the jury pool was biased.

Greenpeace says the jury’s award assumes that Greenpeace was entirely responsible for any injury Energy Transfer sustained related to the protests. Jurors were not given the opportunity to consider whether Greenpeace was only at fault for a portion of the damages, the organization wrote in its brief.

Attorneys for Greenpeace also referenced the mailers and other media circulated to Mandan and Bismarck residents before the trial that contained anti-Dakota Access Pipeline protest and pro-energy industry content.

Advertisement

The environmental group seeks a new trial in Cass County, arguing in part that the jury pool in the Fargo area would be more fair because its residents did not directly experience the Dakota Access Pipeline protests and because the local economy is less dependent on the energy industry.

If Greenpeace’s request for a new trial is denied, it plans to appeal the case to the North Dakota Supreme Court, the organization has said.

Greenpeace previously asked for the trial to be moved from Morton County to Cass County in early 2025, which Gion and the North Dakota Supreme Court denied.

The lawsuit is against three separate Greenpeace organizations — Greenpeace USA, Greenpeace International and Greenpeace Fund.

Energy Transfer as of Wednesday morning had not submitted a response to Greenpeace’s motion for a new trial. Previously, the company has defended the jury’s verdict and disputed Greenpeace’s claims that the court proceedings were not fair.

Advertisement

Energy Transfer has indicated it may appeal Gion’s decision to reduce the award to $345 million.

Greenpeace will not have to pay any of the $345 million judgment for at least a couple of months, Gion ruled Tuesday.

Court documents indicate that the organization could have to pay a bond of up to $25 million while appeals proceed, though the environmental group has asked the judge to waive or reduce this amount. Gion has not decided on this motion.

He noted that obtaining such a large bond will be challenging.

“The magnitude of this matter defies simple decisions,” Gion wrote.

Advertisement

Energy Transfer in court filings urged the judge to require Greenpeace to post the full $25 million.

Any bond money Greenpeace provides would be held by a third party while the appeals proceed, according to Greenpeace USA.

Greenpeace International has filed a separate lawsuit in the Netherlands that accuses Energy Transfer of weaponizing the U.S. legal system against the environmental group. Energy Transfer asked Gion to order that the overseas suit be paused while the North Dakota case is still active, which Gion denied. The company appealed his ruling to the North Dakota Supreme Court, which has yet to make a decision on the matter.



Source link

Advertisement
Continue Reading

Trending