WOOD COUNTY – The Wood County Sheriff’s Department is urging people to be cautious when it comes to using cryptocurrency kiosks.
The kiosks, often found in gas stations or other public places, can be used to buy large amounts of crypto for a fee. But those transactions fees can run as high as 30%, which officials say is “completely ridiculous” when crypto currency can be purchased for free on a cellphone or home computer.
“Scammers have taken full advantage of these kiosks and trick people into putting large quantities of U.S. currency into the kiosks,” Lt. Scott Goldberg said in a release. “When cryptocurrency is purchased, a digital wallet is created and quickly stolen from sometimes the most vulnerable individuals within our community.”
Much like a traditional bank account, digital wallets store your financial information. But instead of physical cash, they hold virtual currency. In some cases, crypto can be exchanged for cash at some kiosks. Right now, there are few regulations about how the kiosks work.
Sheriffs officials say that leaves them open to money laundering and other financial crimes.
Goldberg said they’ve executed numerous warrants on area kiosks, seizing physical currency from them. They then hold the cash in evidence until proper court channels are used to obtain the money. However, one company, Bitcoin Depot, is now refusing to give refunds in Wisconsin when someone is scammed.
“We believe Bitcoin Depot is taking part in these scams/crimes because they know the kiosks are being used as a tool for scammers and they fail to prevent the crimes from taking place,” Goldberg said. “Bitcoin Depot could hold the transaction for a few days like banks do with large checks or put daily maximums on cash deposit in the kiosks, but Bitcoin Depot knows that restrictions would cut into their profits even though it's at the hands of criminals.”
On its website, Bitcoin Depot says it “does not offer custody services for any customer bitcoin wallets; and therefore, would not be able to retrieve any funds from another party or the beneficiary wallet.”
But it’s not just money laundering. According to the Organized Crime and Corruption Reporting Project, citing a 2024 U.S. Treasury Department report, crypto kiosks have also been tied to human trafficking and child sexual exploitation.
They say the lack of regulation is contributing to the issue.
As for the Sheriff’s Department, they’re pushing for change.
“We invite (Bitcoin Depot) and other cryptocurrency companies to work with us in creating a long-term solution,” Goldberg said.
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