Michigan Bitcoin Kiosk Scams Surge, Senate Acts

Complaints and losses from cryptocurrency kiosk fraud rose in 2025, prompting a Senate bill to ban the machines statewide.

Updated on Nov. 9, 2026 in Financial Crime

Bold flat-color editorial illustration of a featureless kiosk block on a plane, with a thin stream of folded cash flowing into an open channel. — Michigan bitcoin kiosk scam complaints rose to 368 in 2025, with about $12 million lost, as a Senate committee unanimously advanced a statewide ban on the machines. AI Illustration. Upload story photo >

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Should Michigan ban bitcoin kiosks to protect residents from scams?

The FBI received 368 complaints tied to bitcoin kiosk scams in 2025, with an estimated $12 million lost, according to reporting from Lansing. A Michigan Senate bill to ban bitcoin kiosks statewide passed a committee unanimously in October and awaits full Senate action.

Why it matters

Scammers direct victims to withdraw cash from bank accounts and feed it into kiosks that convert it to bitcoin and send it to the fraudster, with no government or banking oversight. Because more than 75% of reported losses involved people 60 or older, the scheme falls heavily on older Michiganders.

The Michigan Senate bill to ban bitcoin kiosks statewide passed the Finance, Insurance and Consumer Protection Committee unanimously in October and has not yet received full Senate action. Its sponsor, Sen. Irwin of Ann Arbor, is pursuing passage, and AARP's Lachowski hopes it clears the Senate by the end of the year.

The players

Sen. Irwin

Sen. Irwin, who represents Ann Arbor, is the sponsor of the Michigan Senate bill to ban bitcoin kiosks statewide.

AARP

AARP is a nonprofit advocacy organization for adults aged 50 and older that has backed efforts to curb kiosk-based fraud targeting older Americans.

The details

Victims receive a fraudulent message or phone call claiming to be from a well-known company and are told to withdraw large amounts of cash from their bank accounts. The cash is inserted into a kiosk, converted into bitcoin, and sent to the scammer, with victims often instructed to send the transaction receipt or QR code to the fraudster.

2025: The FBI logged 368 complaints and an estimated $12 million in losses tied to kiosk scams.
October: The Michigan Senate bill passed committee unanimously.
2026: Indiana and Minnesota became the first states to ban bitcoin kiosks.
End of the year: AARP hopes the Michigan Senate bill passes.

Legal Context

Michigan's proposed statewide ban would follow Indiana and Minnesota, which in 2026 became the first states to prohibit bitcoin kiosks. Roughly 35 states have bills to ban or regulate the machines, placing Michigan within a broader legislative wave.

Residents, especially older adults, face direct financial risk from these scams, which often begin with a call or message impersonating a well-known company. If the Senate bill passes, the machines would be banned statewide, removing a channel used to move cash into bitcoin without oversight.

The takeaway

Never withdraw cash at a bank at a caller's direction to feed it into a bitcoin kiosk, since legitimate companies do not request this. Report suspected kiosk fraud to the FBI and your state attorney general.