Wyoming Lawmakers Seek to Regulate Crypto ATM After Millions Lost

• Wyoming lawmakers want to introduce a new rule for crypto ATMs.
• Local police have reported over $3 million in crypto stolen through crypto ATMs.
• Crypto ATM scams rose from $250M in 2024 to $333M in 2025, highlighting a growing fraud threat.

The state of Wyoming is seeking to regulate the crypto ATMs to curb related scams. A bill that would place crypto ATMs under the state banking division has been sponsored by Rep. Ken Clouston, R-Gillette, and will be debated in the upcoming legislative session.

Wyoming Legislators Respond to Rising Crypto ATM Scams

The Problem 

The total amount lost through crypto ATM scams has increased despite a potential decline in the underlying cases. According to Alan Stuber, from the Gillette Police Department, during last week’s AARP Wyoming’s Legislative Preview webinar for Wyoming legislators, Gillette and Campbell County residents lost more than $3 million to crypto ATM scams in 2025.

“When citizens get scammed, we know they tend not to report the scam because they don’t think they can get their money back, or they are embarrassed,” Tom Lacock, AARP Wyoming Associate State Director, stated.

In Wyoming, at least 45 crypto ATMs are operational, thus helping scammers siphon victims widely. Moreover, these crypto ATMs are used to convert cash to crypto instantly.

The Solution

The Wyoming lawmakers have prioritized crypto-related regulations in recent years to protect investors. Moreover, the mainstream adoption of crypto assets has revealed loopholes in loosely regulated sectors, which have helped scammers steal mostly from elderly residents.

As crypto ATM scammers become more ambitious by the year, Wyoming lawmakers are keen to bring crypto ATMs under the banking laws. Under the legislation, licensed operators would likely be subject to consumer-protection requirements, anti-money-laundering (AML) and know-your-customer (KYC) standards, reporting obligations, and potential limits on transaction sizes or fees. 

The bill sponsor argues the measures are necessary to curb fraud, scams, and illicit financial activity, which law enforcement agencies say have linked to crypto ATM usage. However, Rep Clouston is not after an entire ban on crypto ATMs, since the Federal government has been legalizing the crypto industry in the recent past.

A Rising Nationwide Threat

Crypto ATMs have increasingly been used by scammers in nationwide fraud schemes across the United States. 

Several states have reported an increase in money lost through crypto ATMs in the past two years. For instance, the police department in Florida helped an elderly resident avoid sending more than $50,000 through a crypto ATM.

According to the Federal Bureau of Investigation (FBI), scammers stole around $250 million through crypto ATMs in 2024. However, this figure surged to more than $333 million in 2025, showing an increasing nationwide threat from loosely regulated crypto ATMs.

Related: Crypto ATM Scams Surge Across U.S. as 2025 Losses Reach $333 Million