Minnesota Bans Cryptocurrency Kiosks to Combat Fraud, Protecting Consumers from Scams

How the Fraud Works

Between 2023 and 2025, Minnesota received 134 complaints related to cryptocurrency kiosks, with residents reporting nearly $1 million in losses. Scammers use these machines as an effective tool to steal and transfer victims' money in minutes, often before anyone can intervene.

Scammers claim victims' bank accounts or computers are at risk and pressure them to act immediately. They then direct victims to cryptocurrency kiosks to deposit cash. Once funds are deposited into the kiosk, recovery is nearly impossible, as scammers transfer the money to their own accounts within minutes.

Real Cases

Sharon Fleming from Woodbury unknowingly deposited thousands of dollars into cryptocurrency kiosks at multiple Twin Cities convenience stores after being convinced her bank account was in danger. Though she recovered all her funds—one of the rare successful recoveries—many other Minnesota residents have not been as fortunate. Sister Agnes Foley of St. Paul was also targeted but avoided financial loss by seeking help before completing the transaction.

The New Law

Effective August 1st, Minnesota banned the physical operation of cryptocurrency kiosks, making it one of the first states in the nation to do so. All machines must be physically removed by December 31st. However, regulated online cryptocurrency platforms remain legal and typically offer higher consumer protection and lower user fees.

Warning Signs

Be cautious if someone tells you to:

• Act immediately or face serious consequences
• Keep the conversation or payment secret
• Send money to protect your bank account or investments
• Pay with cryptocurrency, gift cards, or bank transfers
• Trust only the person calling and not speak with family, friends, or your financial institution

Prevention Steps

Stop: Scammers exploit urgency. If someone pressures you to act immediately, take a moment before sending money or sharing personal information.

Verify: Contact the organization, company, or family member directly using a trusted phone number or website, not contact information provided by the caller.

Report: If you believe you've been a scam victim, report it to the Minnesota Department of Commerce or local police. Reporting fraud helps investigators identify patterns and prevent additional victims.

Where to Report

If you find an active kiosk, report it to virtualcurrencykioskreporting.COMM@state.mn.us. For fraud reports, contact the Minnesota Department of Commerce or your local police department.

Expert Perspective

Minnesota Department of Commerce Commissioner Grace Arnold stated, "There is no safe cryptocurrency kiosk. Each complaint represents a Minnesota resident whose life was disrupted by a scammer. By prohibiting these machines, Minnesota is eliminating one of the most effective tools scammers have used to steal from consumers."

Scammers continuously evolve, spending years perfecting their tactics by generating panic, impersonating trusted organizations, and pressuring immediate action. If something feels wrong, stop and verify before sending money.