OCCRP: The Surge in Use of Crypto ATMs by Scammers and Criminals

ChainCatcher news, according to a recent investigation by the Organized Crime and Corruption Reporting Project (OCCRP) and the Miami Herald, cryptocurrency ATMs designed to facilitate the conversion of cash into cryptocurrency are increasingly being exploited by scammers.

The OCCRP report indicates that many of these fraudulent activities are linked to international crime networks from countries with weak regulatory frameworks. One of the main issues leading to the increase in crypto ATM scams is the inconsistent regulatory environment between different states. While federal law requires crypto ATM operators to register with the Financial Crimes Enforcement Network (FinCEN) and comply with anti-money laundering (AML) standards, state-level regulations vary widely. Some states have strict requirements, while others, like Illinois, do not classify cryptocurrency as money, thereby limiting regulatory oversight.