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Bitcoin ATM scams cost Tennesseans more than $15M in 2025, and victims are still fighting back
Tennessee has banned bitcoin ATMs, but cryptocurrency businesses are still challenging the law in federal court as scam victims share their stories
PrevNextTennessee banned bitcoin ATMs after scammers stole $15M from residents in 2025. Crypto businesses are fighting the ban in court. Here’s what to know.
BRENTWOOD, Tenn. (WTVF) — Tennessee banned bitcoin ATMs after scammers used the machines to steal more than $15 million from residents in 2025 — but cryptocurrency businesses are still fighting the ban in federal court.
The scams have devastated victims across the state, including in Williamson County, where Brentwood police have responded to multiple cases of people being manipulated into feeding thousands of dollars into the machines.
In March, Brentwood police responded to a 911 call of a theft in progress. The victim had received a call from a scammer claiming she had missed a court date.
“She just got a call from a scammer saying that I missed a court date… and it had me getting money and going places,” the victim said.
The scammers used personal information to convince her to deposit thousands of dollars into a bitcoin ATM. She would then send a code to the scammer, giving them access to all the money she had just deposited.
“You’re not allowed to call anyone until you get there,” the victim said about the scammer calls.
A witness who recognized what was happening realized something was wrong and called 911 for the victim.
“When I got here and I saw bitcoin I was like holy — I mouthed to her, ‘Call the police,’ because I knew something was wrong,” the victim said.
In August 2025, a woman walked into the Brentwood Police Department after scammers refused to leave her alone. Scammers had obtained her number when she tried calling for help with printer problems.
“Please do call me back because there are services that stopped running on your computer,” a recording of the scammer said.
Brentwood police have confirmed compliance with the new law so far and said no business owners have been cited. According to police, the scams have shifted away from ATMs and toward app-based bitcoin trading platforms.
“We are thankful that the new law at least took away one of the tools the scammers were using to steal from our citizens,” Brentwood police said.
The problem extends well beyond Tennessee. The FBI reported that in 2025, the Internet Crime Complaint Center received more than 13,400 complaints reporting the use of cryptocurrency kiosks, with losses over $388 million — a 23% increase in complaints and a 58% increase in losses from 2024. More than half of those complaints involved victims over the age of 50, with losses exceeding $302 million.
Tennessee Attorney General Jonathan Skrmetti successfully defended the ban in court after cryptocurrency businesses sought a preliminary injunction to block the law. The court denied that request, allowing the ban to take effect.
If you are contacted by someone demanding payment through a bitcoin ATM or cryptocurrency app, hang up, slow down and call police before sending any money.
Do you have more information about this story? You can email me at Amanda.Roberts@NewsChannel5.com
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Source: www.newschannel5.com