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 Missouri Supreme Court heard arguments Tuesday on whether the so-called “Missouri First” map is unconstitutional.

The map, passed by Republican lawmakers in September and signed by Gov. Mike Kehoe, stretches the boundaries of the 5th Congressional District, a Democratic stronghold, eastward into heavily Republican regions of the state. It also moves part of the current 5th District into the 4th and 6th districts, currently represented by Republican congressmen Mark Alford and Sam Graves. Incumbent Democrat Emanuel Cleaver is running for reelection in the 5th District.

Opponents of the Missouri First map’s main argument focused on the map being passed by lawmakers without any new data from the U.S. Census Bureau. The congressional boundaries tossed out by the Missouri First map were based on the 2020 U.S. Census.

Attorney Chuck Hatfield represents those challenging the new map passed by Republican lawmakers last fall.

“The whole idea is tethered to the census data. You must do it at the census, and you only do it at the census,” Hatfield told the High Court. “The court’s precedents also support this.”

Solicitor General Louis Capozzi, representing the Missouri Sec. of State’s office, disagreed, saying the Missouri Constitution is silent on mid-decade redistricting.

“Mid-decade redistricting had happened in Missouri in the 1870s, and mid-decade redistricting was common around the country in the first half of the 20th century,” he argued. “Article III, Section 45 of the Missouri Constitution sets out only three requirements for the redistricting of seats in Missouri, ‘The district shall be composed of contiguous territory, as compact, and as nearly equal in population as may be.’ And as long as the General Assembly complies with those three rules, this court said that Missouri courts, ‘shall respect the political determinations of the General Assembly.’”

Meanwhile, roughly a hundred demonstrators held signs across the street from the Missouri Supreme Court building, condemning the Missouri First map and calling for the Missouri Supreme Court to strike it down.

“Voters should choose our politicians,” said Missouri League of Women Voters Director Kay Park. “The League (of Women Voters) believes redistricting should keep communities of similar culture and race together to strengthen their vote and promote partisan fairness.”

The Missouri Supreme Court will rule on the congressional district map later.

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GRAND ISLAND, Neb. — UPDATE: Grand Island Police said around 3:30 p.m. Tuesday that the shelter in place order has been lifted .

GIPD said the item was retrieved by the Nebraska State Patrol Bomb Squad, who is investigating.

The area has also now been reopened.

ORIGINAL STORY:

The Grand Island Police Department has cordoned off a local block and is urging residents to shelter in place.

According to GIPD, officers responded to the 4300 block of Sherwood Road just before 2:00 p.m. Tuesday afternoon. A resident reported finding a suspicious cylindrical object wrapped in duct tape inside a home.

The Nebraska State Patrol Bomb Squad has been called to the scene to investigate the device.

We will provide more information as it becomes available.