The city of Newton, Massachusetts is moving to outlaw cryptocurrency ATMs. This follows reports that residents have lost over $411,000 to scams linked to these machines since 2023. Police say none of that money was recovered.
The city’s Programs and Services Committee discussed the idea this week. Most members signaled support for a complete ban not just new limits. They plan to work with the city’s Law Department to draft an ordinance. Their model is a ban already in place in nearby Waltham.
Ward 2 Councilor Tarik Lucas laid out the local toll. He told the committee Newton has seen about 26 such scams since 2023. The losses total $411,000. The student newspaper The Heights reported that no victim has recovered their funds. Lucas noted some victims never report the crime at all often out of embarrassment.
Newton Police Sergeant Brian Tramontozzi who owns cryptocurrency himself explained the recovery problem. His detective bureau has not succeeded in reclaiming any crypto for victims. Massachusetts courts lack a clear legal precedent for law enforcement to seize cryptocurrency on a victim’s behalf. Once a transaction is sent from a crypto ATM it is instant and nearly impossible to reverse.
This local action is part of a patchwork response. Waltham enacted its own ban in 2025. The ordinance prohibits anyone from installing or operating a cryptocurrency ATM in the city. It defines the machines broadly as any public kiosk for buying selling or transferring crypto with cash or cards. Violators face a $300 daily fine per machine. Before the ban Waltham had 14 such ATMs. Over 20 people there reported combined losses of $175,000 in 2025.
Not every Newton councilor is ready for a full ban. Ward 2 Councilor David Micley suggested exploring limits from other cities first. He urged a closer look before committing to outright prohibition. Most of his colleagues however favored stronger action.
The debate reflects a broader reckoning. The fees on these machines are a key point. Crypto ATMs typically charge markups between 10% and 20% per transaction. This is far steeper than the 1% to 4% fees charged by major exchanges like Coinbase or Kraken.
The problem is significant across Massachusetts. FBI data cited by WBUR shows 296 crypto kiosk scam complaints in the state in 2025. Reported losses reached $6.8 million. Massachusetts remains the only New England state where the kiosks are completely unregulated.
State authorities are taking notice. The Massachusetts Attorney General’s office has alleged that more than 80% of customers who spent over $10,000 at Bitcoin Depot kiosks did so for scam transactions. The AG’s office has filed suit against Bitcoin Depot. They allege the company used misleading tactics and knowingly facilitated scams costing consumers over $10 million.
| City | Year | Action Taken | Losses Reported |
|---|---|---|---|
| Newton | 2023 | Proposed Ban | $411,000 |
| Waltham | 2025 | Implemented Ban | $175,000 |
| Gloucester | 2025 | Implemented Ban | N/A |
| Haverhill | 2025 | Implemented Ban | N/A |
At least three Massachusetts cities Waltham Gloucester and Haverhill have now banned the machines. A state bill to regulate them has stalled on Beacon Hill for over a year. It would now need amendment to reflect a ban rather than rules.
The national trend is toward restriction. The ABA Banking Journal reports twenty states have adopted new laws limiting crypto kiosk activity. Indiana became the first state to enact a total ban. South Dakota now mandates full refunds for fraud victims and caps daily transactions at $1,000.
The scale is vast. The FBI’s Internet Crime Complaint Center received over 10,956 complaints involving crypto kiosks in 2024. Victim losses totaled roughly $246.7 million. The Federal Trade Commission adds a sobering demographic detail. Consumers over 60 were more than three times as likely as younger adults to report losses to Bitcoin ATM scams. Their median reported loss was $10,000 in the first half of 2025.
For Newton the next step is a draft ordinance. The Law Department will bring it to the committee’s next meeting. The question is whether it will mirror Waltham’s flat ban or incorporate Councilor Micley’s call for alternatives. The committee has yet to resolve it. The direction however is clear. Cities are deciding that when recovery is impossible prevention is the only viable policy.
