Bitcoin ATMs tied to $11B scams as Tennessee enacts ban

Bitcoin ATMs have emerged as the final cash-out point in a sprawling U.S. crypto scam pipeline that produced more than $11 billion in losses during 2025. Tennessee became the second state after Indiana to ban the machines when Governor Bill Lee signed legislation turning operation or hosting into a Class A misdemeanor, citing a recent $4 million fraud case. The move follows FBI data showing 13,460 kiosk-related complaints and $388.98 million in adjusted losses, with complaints rising 23% and losses up 58% year-over-year, underscoring growing regulatory pressure on crypto infrastructure.