Minnesota bans crypto kiosks after $1M in scam losses

Governor Tim Walz signed a statewide ban on crypto kiosks into law on May 5, 2026, after a wave of scams cost Minnesota residents nearly $1 million over roughly two years. The machines must stop operating by August 1, 2026, and be physically removed by December 31, 2026.

Minnesota joins Tennessee and Indiana as the only U.S. states to fully outlaw the machines. Between 2023 and 2025, residents filed over 100 complaints with the Minnesota Department of Commerce tied to kiosk scams. In 2025 alone, 70 recorded cases produced losses exceeding $540,000.

One case involved an 80-year-old victim who lost $80,000 to a single scam routed through a kiosk. Investigators in Faribault separately identified losses surpassing $500,000, a figure authorities said is likely underreported since many victims, especially seniors, never come forward out of embarrassment.

The scams followed recognizable playbooks: fake emergency calls, impersonation of government officials, and romance schemes. The common thread is urgency. Scammers convince victims the cash must be converted to crypto immediately, the kiosk provides that conversion with minimal friction, and the funds disappear into wallets that are nearly impossible to trace.