TechFlow news, according to a recent report by blockchain analytics firm TRM Labs, the cash-to-crypto industry—primarily driven by cryptocurrency ATMs—has facilitated at least $160 million in illicit transactions since 2019.
In 2023 alone, illegal transfers through cash-to-crypto services to known scam addresses reached $30 million, accounting for 79% of such activity.
The report highlights growing concerns among global law enforcement agencies regarding the rising use of crypto ATMs. Recently, Germany's financial regulator BaFin seized 13 crypto ATMs and confiscated approximately $280,000 in cash. Similar actions have been taken in countries including the United Kingdom and the United States.
TRM Labs emphasized that crypto ATMs face heightened money laundering risks due to cash usage and the lack of face-to-face interaction or account-opening controls. Notably, in digital asset scams involving individuals aged 60 and above in 2023, 13% were linked to Bitcoin ATMs.
Despite shutting down over 1,000 machines since May, the United States still hosts the world’s largest number of crypto ATMs, with more than 31,000 units. Australia has seen a 17-fold increase in crypto ATMs over two years and may now be the world’s third-largest market.
