ST. PAUL — Minnesotans are losing retirement money, emergency funds, and life savings through scams involving cryptocurrency kiosks — machines that allow money to disappear almost instantly into difficult-to-trace digital transactions. A new state law will ban the kiosks beginning Aug. 1 to stop a fast-growing form of scam that disproportionately targets seniors.

Cryptocurrency kiosks allow cash to be converted into digital currency almost instantly. Once a transaction is completed, it’s hard to trace and the funds are extremely difficult to recover. Scammers exploit that speed and irreversibility by directing victims to kiosks as part of high-pressure schemes.

“When people believe a loved one is in danger or they are facing a serious threat, they act quickly because protecting the people we love comes first,” said Grace Arnold, commissioner of the Minnesota Department of Commerce. “Criminals take advantage of that instinct, using urgency and fear to scam people in vulnerable moments. Cryptocurrency kiosks allow that money to disappear almost instantly.”

From 2023 to 2025, Minnesota recorded 134 complaints tied to cryptocurrency kiosk scams, totaling nearly $1 million in reported losses. In 2025 alone, there were 70 cases and more than $540,000 lost, with an average loss of nearly $6,800 per transaction. Officials note many cases go unreported.

Law enforcement agencies across Minnesota continue to see scams involving cryptocurrency kiosks. Many involve emotional manipulation — including “grandparent” emergencies, romance scams, or impersonation of government officials — where victims are pressured to act quickly and send money before they can verify what’s happening.

“Far too many Minnesotans have been targeted through cryptocurrency kiosks and suffered life-changing financial losses,” said Minnesota Bureau of Criminal Apprehension Superintendent Drew Evans. “We’re grateful to see this legislation reach the finish line. Banning these kiosks removes a tool criminals have repeatedly used to exploit vulnerable people and is an important step toward better protecting Minnesotans from scams and deception.”

Minnesota previously implemented licensing and consumer protections for cryptocurrency kiosks, but fraudsters have adapted by coaching victims through transactions, bypassing warning systems, and structuring deposits to avoid safeguards.

Sara Payne, assistant commissioner of enforcement at the Minnesota Department of Commerce, said banning the kiosks is a necessary step to protect Minnesotans from a highly effective form of fraud. 

“We see firsthand how these scams impact individuals and families and how difficult it can be to recover losses once the money is gone,” Payne said. “The impacts can be catastrophic.”

Department of Commerce Investigator Paul Haas has had conversations with many crypto kiosk scam victims. He says scammers often impersonate law enforcement and convince victims their loved one has been arrested, manipulating them into emptying bank accounts and feeding life savings into virtual currency kiosks for hours.

“When victims call our office after a crypto kiosk scam, you can hear the panic and shame in their voices,” Haas said. “By the time victims realize they were deceived, the emotional and financial damage can be devastating. We’ve heard some victims are even afraid or embarrassed to report what happened. Our job is not only to investigate the fraud, but to rebuild trust and remind victims that reporting these scams helps protect other Minnesotans from becoming the next target.”

The law prohibits physical cryptocurrency kiosks in Minnesota while preserving access to digital currency through regulated online platforms, which typically offer stronger consumer protections and lower user fees.

Minnesotans are urged to be cautious of anyone directing them to withdraw cash and deposit it into a machine. The Department of Commerce will work with kiosk operators to take them offline by Aug. 1 and to have the machines physically removed from retail spaces before Dec. 31.  The Department of Commerce will issue consumer guidance on how to report crypto kiosks closer to the ban’s effective date. 

The kiosk ban comes as the Department of Commerce expands its work around Senior Fraud Prevention Day on May 15, including outreach and education to help Minnesotans recognize scams, protect themselves and report fraud before money is lost.

“If someone is telling you to act quickly and send money through a kiosk or any machine, it’s a scam,” Arnold said. “Pause, talk to someone you trust and report it. That moment can make all the difference.”

The Minnesota Department of Commerce is here to help. Minnesota consumers and businesses can contact Commerce’s Enforcement Division about concerns or complaints: 

• File a complaint online 
• Email: consumer.protection@state.mn.us  
• Verify whether a company is licensed to do business in Minnesota: License Lookup.
• Search Commerce Actions and Regulatory Documents to view past enforcement actions.

Contact
Jen Longaecker | Media Relations and Public Affairs Director
jen.longaecker@state.mn.us | 651-478-9457