TRM Labs: Crypto ATMs Become Money Laundering Risks, At Least $160 Million in Illegal Transactions Processed

ChainCatcher news, according to a report by Coindesk, the latest report from blockchain analytics firm TRM Labs shows that since 2019, the cash-to-crypto industry, primarily driven by cryptocurrency ATMs, has processed at least $160 million in illegal transactions.

In 2023, illegal transfers to known scam addresses through cash-to-crypto services reached as high as $30 million, accounting for 79%.

The report points out that global law enforcement agencies are increasingly concerned about the growth of cryptocurrency ATM usage. Recently, Germany's financial regulator BaFin shut down 13 cryptocurrency ATMs and seized approximately $280,000 in cash. Similar actions have been taken in countries like the UK and the US.

TRM Labs emphasizes that cryptocurrency ATMs face additional money laundering risks due to their use of cash and the lack of face-to-face interaction or account controls. Notably, in 2023, 13% of digital asset fraud cases involving individuals over 60 were related to Bitcoin ATMs.

Although the US has shut down over 1,000 machines since May, it still has the most cryptocurrency ATMs in the world, with over 31,000. The number of cryptocurrency ATMs in Australia has increased 17-fold in two years, potentially making it the third-largest market globally.