North Dakota
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.
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.
Contributed / Stacy Kennedy, Gate City Bank
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.
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.
“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.
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.
JAMESTOWN, N.D. — The No. 2 seed Thompson Tommies survived an upset scare by defeating the No. 7 seed Rugby Panthers 39-36 on Thursday, March 5, in the quarterfinals of the North Dakota Division A girls basketball state tournament at the Jamestown Civic Center.
With 16 seconds left in the game and down 39-36, Panthers coach Jen Brossart drew up one final play in an attempt to send the game to overtime. Strong defense from the Tommies formed a cluster of players at the top of the arc, and as time expired, Panthers guard Avery Santjer put up a falling-away 3-point attempt that came up short, giving the quarterfinal victory to Thompson.
Addison Sage had 15 points to lead Thompson with Kya Hurst chipping in 11. Santjer led Rugby with 13.
Burchill’s double-double leads Valley City to win
Valley City junior forward Katie Burchill scored a 23-point double-double with 18 rebounds to lead the Hi-Liners to a 64-44 quarterfinal victory over Devils Lake on Thursday.
Valley City outscored Devils Lake 21-6 in the third quarter to take a commanding lead.
Presley Brown and Tylie Brodina each scored 12 for the Firebirds.
Burchill and sophomore forward Skye Nelson also recorded nine of Valley City’s 12 blocks.
John M. Steiner / The Jamestown Sun
South Prairie-Max runs past Watford City
South Prairie-Max scored a 50-point victory over Watford City, winning 75-25 on Thursday in the quarterfinals behind 19 points from Skotti Beck.
Mya Gunville added 12 points and Brianna Rose 11 for South Prairie-Max.
Lohgan Hanna led Watford City with nine points.
Trenbeath, Kindred squeak by Hazen
Liza Trenbeath’s 27 points paced No. 4 seed Kindred to a 56-54 win over No. 5 Hazen in Thursday’s quarterfinals.
Siera Nipstad chipped in 19 points and six rebounds as the Vikings (20-5) advanced to Friday’s state semifinals against top-seeded South Prairie-Max (24-1). Tipoff is set for 8:15 p.m. at the Jamestown Civic Center.
Kindred shot 22 of 51 (43.1%) from the field to Hazen’s 19 of 41 (46.3%)
Our newsroom occasionally reports stories under a byline of “staff.” Often, the “staff” byline is used when rewriting basic news briefs that originate from official sources, such as a city press release about a road closure, and which require little or no reporting. At times, this byline is used when a news story includes numerous authors or when the story is formed by aggregating previously reported news from various sources. If outside sources are used, it is noted within the story.
Greg Power, fisheries division chief with the North Dakota Game and Fish Department, shares information about the new 2026-2028 Fishing Guide and a few new regulations starting April 1, 2026.
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SIOUX FALLS — Ali Stephens had 17 points and 13 rebounds and 8th-seeded Omaha defeated 9th-seeded North Dakota 49-39 in the first round of the Summit League women’s tournament.
The Fighting Hawks had a tough time putting the ball in the hoop all night long, scoring just three points in the first quarter and having only marginally better luck from there.
UND (7-24) shot just 23.5 percent from the floor (12-for-51) and made 1-of-20 shots from outside the arc. Walker Demers and Mackenzie Hughes had 10 points each to lead the Hawks, with Demers adding eight rebounds.
Matt Zimmer/Sioux Falls Live
Regan Juenemann had 10 points and five rebounds for the Mavericks while Avril Smith had seven points and 16 rebounds and Sarai Estupinan eight points, five assists and three rebounds. Omaha (6-26) shot the ball slightly better than the Hawks, going 16-of-53 from the field (30 percent) and 8-of-23 (35 percent) on 3-pointers.
With the win, the Mavs earn a date with top-seed North Dakota State on Thursday at 2:30 p.m.
The Bison won both regular season matchups by more than 50 points.
Matt Zimmer/Sioux Falls Live
Oral Roberts 84, Kansas City 62 — Don’t look now but the team that started the conference season 0-10 and at one point lost 15 of 16 games might be the hottest in the Summit League.
Oral Roberts picked up their fourth straight victory on Wednesday night in the conference tournament opener, routing Kansas City at the Premier Center in the 8/9 “play-in” game.
Ty Harper had 22 points to lead the Golden Eagles (10-22), who took a 44-21 lead by halftime and never looked back. ORU shot 50 percent from the floor and made 13-of-27 3-pointers while the Kangaroos shot just 34 percent and made 6-of-24 from deep. Martins Kilups had 17 points for the Eagles and Connor Dow added 14.
Jayson Petty had 14 points to lead the Kagaroos, who finish the season 4-27. It was their final game under coach Marvin Menzies, whom the school announced earlier this season would not return next year.
With the win ORU advances to face top-seed North Dakota State on Thursday at 6 p.m.
The Golden Eagles lost to NDSU 86-58 in Tulsa on Jan. 24 but they took the Bison to overtime in Fargo on Jan. 3 in a 79-77 loss.
Matt Zimmer is a Sioux Falls native and longtime sports writer. He graduated from Washington High School where he played football, legion baseball and developed his lifelong love of the Minnesota Twins and Vikings. After graduating from St. Cloud State University, he returned to Sioux Falls, and began a long career in amateur baseball and sports reporting. Email Matt at mzimmer@siouxfallslive.com.
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