Committee backs crypto-ATM fraud protections with limits and warnings after victims testify
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Summary
The Senate committee unanimously recommended House Bill 72, which would impose daily limits and require fraud warnings on crypto-ATM kiosks to slow scams; witnesses included law enforcement, AARP and victims describing substantial losses via crypto ATMs.
The Senate Business and Labor Committee on Feb. 25 unanimously (5-0) favorably recommended House Bill 72, second substitute, which sets consumer-protection measures for crypto ATMs and grants enforcement tools to consumer-protection and law-enforcement agencies.
Representative Wilcox said the measure responds to investigations showing crypto ATMs were used to move funds in frauds and human-trafficking schemes. The bill requires fraud warnings on kiosks (in English and Spanish), provides investigators with additional data and tools, and establishes an initial daily limit for new transactions intended to slow transfers while victims realize the scam.
Law-enforcement and consumer advocates strongly supported the bill. Stewart Young, criminal deputy attorney general, described crypto ATMs as conduits for moving proceeds in multiple crime types. Lehi Minson, chief investigator for the Utah Division of Consumer Protection, offered a personal example of a 77‑year-old victim who lost $40,000 via machine-structured withdrawals. Shera Linzer of the Salt Lake County Sheriff's Office recounted a $52,000 loss sent through crypto ATMs that left little recoverable funds.
Sponsor and industry described a negotiated compromise on daily transaction limits: $2,000 per day for the first three days, then $5,000 per day thereafter, which the sponsor said was acceptable to industry partners. Senator Ibsen moved to favorably recommend the second substitute; the committee approved the motion unanimously, 5-0.
Next steps: HB72 will move to the full Senate under the committee recommendation.