Tennessee’s Ban on Cryptocurrency ATMs Takes Effect July 1 Amid Rising Scam Losses
By Zaneta Lowe, WREG.com
Posted: June 8, 2026 — Updated: June 8, 2026
MEMPHIS, Tenn. — Beginning July 1, Tennessee will officially ban the operation of cryptocurrency ATMs throughout the state in an effort to combat a surge in financial scams targeting residents, especially senior citizens. This decision follows alarming data showing Tennesseans lost over $15 million to crypto ATM-related fraud in 2025 alone.
Crypto ATMs: A Growing Threat to Tennesseans
Cryptocurrency ATMs, which resemble traditional cash machines but are used to purchase cryptocurrencies such as Bitcoin, have become a common fixture in Nashville and other Tennessee cities. You might find them tucked in convenience stores, drugstores, and shopping centers — locations frequented by everyday shoppers.
However, authorities and consumer advocates warn these machines have increasingly been exploited by scammers. Cumberland County Sheriff Casey Cox cautioned lawmakers earlier this spring, highlighting how fraudsters use these ATMs in schemes that prey heavily on vulnerable populations, especially seniors. “Law enforcement across Tennessee and the United States is encountering these machines in connection with fraud schemes targeting our most at-risk citizens,” he said.
Fraud Patterns and Public Awareness Efforts
The FBI and U.S. Secret Service have joined forces to increase public awareness about crypto ATM fraud. Special Agent Morgan Morgan described the scam tactics: fraudsters often convince victims to send money via these machines as part of romance scams, tech support scams, or fake investment schemes.
During a recent outreach, Agent Morgan posted warning signs on cryptocurrency ATMs in local grocery stores and gas stations. “If you’re going to a Bitcoin ATM to invest, it’s a scam,” Morgan emphasized. “You should never send money to a family member through a Bitcoin ATM.”
Despite such warnings, the financial toll has been staggering. Just days before his legislative testimony, Sheriff Cox recounted a case in Putnam County where a woman lost $300,000 by transferring funds via a crypto ATM.
Legislative Response: A Ban to Protect Tennesseans
The widespread financial harm prompted Tennessee lawmakers to act. Two bills were passed into law this year, prohibiting the ownership, operation, or management of cryptocurrency ATMs statewide. Tennessee is now the second state in the nation to enact such a ban.
Gerrie Currie, Volunteer State President of AARP, played a pivotal role advocating for the ban, emphasizing the machines’ pervasive presence across all types of communities. “They are everywhere — from high-end to low-end areas. The problem is widespread and affects many,” Currie told WREG.
Agent Morgan hailed the new legislation as a major victory for law enforcement and public safety, expressing hope other states will follow Tennessee’s lead.
Enforcement Plans and Future Outlook
With the ban’s July 1 implementation date approaching swiftly, local agencies are preparing to enforce the new law:
-
Memphis Police Department has stated it will investigate any complaints and address violations encountered during officers’ regular duties.
-
The Shelby County Sheriff’s Office is collaborating with the District Attorney’s office to locate existing crypto ATMs and ensure compliance with the ban. Sheriff Floyd Bonner affirmed, “This law is a great step forward to protect our residents against cryptocurrency scams. It sends a strong message to fraudsters: Our citizens will no longer be easy targets.”
Continuing the Fight Against Crypto Fraud
Although the crypto ATM ban is a significant step toward reducing financial scams, authorities urge Tennesseans to remain vigilant. Public education campaigns and law enforcement monitoring will continue alongside the ban to safeguard consumers from evolving fraud tactics.
For more information about how to protect yourself from cryptocurrency scams or to report suspicious activity involving crypto ATMs, residents are encouraged to contact local law enforcement or visit trusted consumer protection websites.
Copyright 2026 Nexstar Media Inc. All rights reserved.
For more local news, visit WREG.com.