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WISCONSIN RAPIDS, WI (WSAU) — The Wood County Sheriff’s Office is calling for state regulations on Cryptocurrency ATMs after they were called to investigate numerous scams involving the machines.
Officers say they’d like to see the operators of the machines implement safeguards to keep them from becoming a third party in the transactions. Those could include daily limits on deposits and a hold process for large transactions, much like banks use for large checks. They’re also encouraging residents to tell their local Legislators to support laws that would implement those safeguards.
When scams are reported, officers must secure a warrant for the machine’s contents, then hold the cash in evidence storage until the court determines it can be released to an interested party.
Crypto ATMs are often found in public spaces like convenience stores and grocery stores. They allow people to turn cash into crypto, which is then held in a digital wallet. Scammers can then steal that digital wallet and its contents, leaving the victim without both the digital and paper currency unless officers can obtain a warrant for the machine’s contents first.