Crypto ATM scams have wreaked havoc in Wisconsin. A new law is helping change that, but did it go far enough?

Rise of crypto ATM scams

Robert Semanko told police he thought he couldn’t be scammed. Then last October the 31-year-old father of three from central Wisconsin got a call from a scammer posing as the Chippewa County Sheriff’s Office.

Semanko was told he missed jury duty, resulting in two citations, and owed an additional $2,000 fine. Over three hours the scammer tricked Semanko into inserting $7,000 into a crypto ATM.

Crypto ATM scams have become more prevalent in Wisconsin and throughout the U.S. in recent years, leading lawmakers to pass legislation. The scams have caused headaches for local law enforcement agencies and oftentimes pain, embarrassment and irreversible financial damage to victims.

Legislative response in Wisconsin

Sen. Jesse James, R-Thorp, who as a Cadott police officer responded to Semanko’s case, co-authored recently approved legislation that places significant regulations on crypto ATMs statewide. But unlike a handful of other states, including Minnesota and Indiana, Wisconsin opted not to ban crypto ATMs completely as lobbyists pressed regulation-averse Republican lawmakers for looser restrictions.

As the first law in Wisconsin to place consumer protections on crypto ATMs, Act 226 restricts daily transactions to $1,000, requires receipts after each transaction, mandates consumer identification and offers refunds to victims. Now, incidents as severe as Semanko’s are far less likely to occur, according to lawmakers, law enforcement officials and Wisconsin’s Department of Financial Institutions.

“People need to be educated on this more,” James said. “I think with the new law, it’s gonna definitely help because people will be more well versed on how this is coming about.”

The mechanics of kiosk fraud

Cryptocurrency kiosks, also known as bitcoin ATMs or crypto ATMs, have sprouted throughout the United States in recent years. With at least 28,000 locations in the U.S., and around 700 in Wisconsin, these machines convert cash into a digital crypto currency, stored in a digital wallet similar to a bank account, with valuations depending on the market value of the cryptocurrency.

They are most commonly located at convenience stores, gas stations and grocery stores. A CNN investigation found crypto ATMs charge 20-30% in transaction fees, far more than other forms of crypto purchasing. Because cash is the primary medium for crypto ATM deposits, transactions are often untraceable, which means lost money is often unrecoverable, making the machines an alluring instrument for scammers.

Despite reassurances from machine operators, crypto ATMs have contributed to sometimes enormous damage for many across all corners of Wisconsin. In July 2024, a Dodge County woman lost $200,000 through a crypto ATM scam. A victim in Ozaukee County lost over $98,000 over 19 transactions in October 2024. And in September 2025 a Milwaukee County resident lost $114,000, a Dane County consumer reported losing $135,000 and a Walworth County victim reported a loss totaling $400,000.

Industry pushback and operator struggles

Americans lost $333 million in scams involving crypto ATMs in 2025, up from $246.7 million in 2024 and $110 million in 2023. In response, 36 states have passed legislation aimed at restricting crypto ATMs, including an outright ban of crypto ATMs in Indiana, Tennessee and Minnesota.

Wisconsin opted not to ban crypto ATMS, though early in the bill’s development lawmakers considered that possibility, bill co-author Rep. Patrick Snyder, R-Weston, said. When Wisconsin’s bill was initially drafted in November 2025, the daily transaction limit was set at $500, which would have been the strictest daily transaction limit in the country.

In May Bitcoin Depot filed for bankruptcy, citing increasing restrictive legislation throughout the country making crypto ATMs unviable as a business model. Operators such as Coinhub, Bitcoin Depot and Coinflip say their machines are valuable for their simplicity in offering users an option to purchase crypto currency using cash.