Victims of address poisoning scams were tricked into willingly sending over $1.2 million worth of funds to scammers, showcasing the problematic rise of cryptocurrency phishing attacks.

Address poisoning, or wallet poisoning scams, involves tricking victims into sending their digital assets to fraudulent addresses belonging to scammers.  

Pig butchering schemes on Ethereum have cost the crypto industry over $1.2 million worth of funds in the nearly three weeks since the beginning of the month, wrote onchain security firm Cyvers in a March 19 X post:

“Attackers send small transactions to victims, mimicking their frequently used wallet addresses. When users copy-paste an address from their transaction history, they might accidentally send funds to the scammer instead.”

Source: Cyvers Alerts

Address poisoning scams have been growing, since the beginning of the year, costing the industry over $1.8 million in February, according to Deddy Lavid, co-founder and CEO of Cyvers.

The growing sophistication of attackers and the lack of pre-transaction security measures are some of the main reasons for the increase, the CEO told Cointelegraph, adding:

“More users and institutions are leveraging automated tools for crypto transactions, some of which may not have built-in verification mechanisms to detect poisoned addresses.”

While the higher transaction volume due to the crypto bull market is a contributing factor, pre-transaction verification methods may stop a significant amount of phishing attacks, said Lavid, adding:

“Unlike traditional fraud detection, many wallets and platforms lack real-time pre-transaction screening that could flag suspicious addresses before funds are sent.”

Related: August sees 215% rise in crypto phishing, $55M lost in single attack

Address poisoning scams have previously cost investors tens of millions. In May 2024, an investor sent $71 million worth of Wrapped Bitcoin to a bait wallet address, falling victim to a wallet poisoning scam. The scammer created a wallet address with similar alphanumeric characters and made a small transaction to the victim’s account.

However, the attacker returned the $71 million days later, after he had an unexpected change of heart due to the growing attention from blockchain investigators.

Related: Ledger users targeted by malicious ‘clear signing’ phishing email

Phishing scams are a growing problem for the crypto industry

Phishing scams are becoming a growing threat to the crypto industry, next to traditional hacks.

Pig butchering scams are another type of phishing scheme involving prolonged and complex manipulation tactics to trick investors into willingly sending their assets to fraudulent crypto addresses.

Pig butchering schemes on the Ethereum network cost the industry over $5.5 billion across 200,000 identified cases in 2024, according to Cyvers.

The average grooming period for victims lasts between one and two weeks in 35% of cases, while 10% of scams involve grooming periods of up to three months, according to Cyvers data.

Pig butchering victim statistics and grooming periods. Source: Cyvers

In an alarming sign, 75% of victims lost over half of their net worth to pig butchering scams. Males aged 30 to 49 are most affected by these attacks.

Phishing scams were the top crypto security threat of 2024, which netted attackers over $1 billion across 296 incidents as the most costly attack vector for the crypto industry.

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Bitcoin’s (BTC) price action has closely mirrored that of the US equity market in recent years, particularly the tech-heavy Nasdaq and the benchmark S&P 500.

Now, as fund managers stage a historic exodus from US stocks, the question arises: could Bitcoin be the next casualty?

Fund managers dump US stocks at record monthly pace

Investors slashed their exposure to US equities by the most on record by 40-percentage-points between February and March, according to Bank of America’s latest survey.

This is the sharpest monthly decline since the bank began tracking the data in 1994. The shift, dubbed a “bull crash,” reflects dwindling faith in US economic outperformance and rising fears of a global downturn.

With a net 69% of surveyed managers declaring the peak of “US exceptionalism,” the data signals a seismic pivot that could ripple into risk assets like Bitcoin, especially given their persistent 52-week positive correlation over the years.

Bitcoin and S&P 500 index 52-week correlation coefficient chart. Source: TradingView

More downside risks for Bitcoin and, in turn, the broader crypto market arise from investors’ rising cash allocations.

BofA’s March survey finds that cash levels, a classic flight-to-safety signal, jumped to 4.1% from February’s 3.5%, the lowest since 2010.

BofA Global Fund Manager March survey results. Source: BofA Research

Adding to the unease, 55% of managers flagged “Trade war triggers global recession” as the top tail risk, up from 39% in February, while 19% worried about inflation forcing Fed rate hikes—both scenarios that could chill enthusiasm for risky assets like Bitcoin.

Conversely, the survey’s most crowded trades list still includes “Long crypto” at 9%, coinciding with the establishment of the Strategic Bitcoin Reserve in the US.

Meanwhile, 68% of managers expect Fed rate cuts in 2025, up from 51% last month.

Related: ‘We are worried about a recession,’ but there’s a silver lining — Cathie Wood

Lower rates have previously coincided with Bitcoin and the broader crypto market gains, something bettors on Polymarket believe is 100% certain to happen before May.

Bitcoin price hangs by a thread

Bitcoin’s price has declined by over 25% two months after establishing a record high of under $110,000 — a dropdown many consider a bull market correction, suggesting that the cryptocurrency may recover in the coming months.

“Historically, Bitcoin experiences these types of corrections during long-term rallies, and there’s no reason to believe this time is different,” Derive founder Nick Forster told Cointelegraph, adding however that the cryptocurrency’s next six months depend on how traditional markets (stocks) perform.

Technically, as of March 19, Bitcoin was holding above its 50-week exponential moving average (50-week EMA; the red wave) at $77,250.

BTC/USD weekly price chart. Source: TradingView

Historically, BTC price returns to the 50-week EMA after undergoing strong rallies. The cryptocurrency’s decisive break below the wave support has signaled a bear market in the past, namely the 2018 and 2022 correction cycles.

Source: Milkybull Crypto

A clear breakdown below the wave support could have BTC’s bears eye the 200-week EMA (the blue wave) below $50,000, echoing the downside sentiment discussed in the BofA survey.

Conversely, holding above the 50-week EMA has led prices to new sessional highs, akin to what the market witnessed in 2024. If Bitcoin recovers from the said wave support, its likelihood of testing the $100,000 psychological resistance level is high.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Blockchain For Impact (BFI), a charity established by Polygon co-founder Sandeep Nailwal, has committed $90 million to advance biomedical research, driving healthcare innovation, and enhancing climate resilience — a development that could spur blockchain’s adoption for charity initiatives.

The Polygon co-founder’s BFI plans to allocate an additional $200 million to support the growth of healthcare startups, expand biomedical research, and strengthen the public health systems.

BFI has backed several impactful projects in India’s healthcare sector, including Solar-Powered Public Health Centers (PHCs), a floating hospital in Assam to aid communities in flood-prone areas, the UNICEF Healthcare Innovation Partnership, and relief funding during the COVID-19 crisis. Their further initiatives will place a greater emphasis on healthcare innovation and research.

Incorporating blockchain technology can make philanthropic efforts more transparent and accountable thanks to the ledger’s verifiability, according to Sandeep Nailwal, Founder of Blockchain for Impact and co-founder of Polygon.

Nailwal told Cointelegraph:

“All donations received by BFI can be tracked through blockchain. While the final transfer to non-profit programs happens through a bank, every financial step is transparently displayed on our website. All financial data can be visualized, and we publish NGO details, allowing anyone to independently verify the disbursements.”

“Separately, the $68 million we channeled for COVID-19 relief in India, including $15 million to the Government of India through UNICEF for 128 million syringes during COVID-19, followed the same approach,” said Nailwal, adding:

“Anyone, be it donors or communities, can see where the money goes. This shows up in the results: 96% of healthcare workers say care has improved, and vaccine wastage dropped 83% because refrigeration is steady.”

Source: The Given Block Annual Report

According to The Giving Block’s report, BFI exemplifies the rapid growth of crypto philanthropy, with its $90 million in donations representing 9% of all cryptocurrency contributions tracked globally in 2024.

This surge aligns with the transformative potential of digital donations to enhance transparency and efficiency in fund allocation. The same report reveals that over 70% of the top 100 US-based charities now accept crypto.

Related: Crypto giving exceeded $1B in 2024 — Report

Global charities are embracing crypto donations

Charitable organizations are increasingly embracing cryptocurrency donations, thanks to the transparency of the blockchain ledger, which makes donations publicly traceable and reduces the transaction fees of charitable transactions compared to fiat-based donations.

Beyond just the US, charities across the globe embrace crypto donations, including large charities like the UK Red Cross and Singapore Red Cross. Save the Children, a leading international nonprofit organization, disclosed that they had received $8.6 million in crypto donations so far.

Source: Save The Children Website

As cryptocurrency adoption grows, so does the need for secure and compliant solutions for nonprofits. The Given Block announced its partnership with Gemini on March 13. The organization thinks artificial intelligence can help make crypto in philanthropy more secure.

Crypto donations have the potential to enhance charitable revenue. A report from Fast Company found that nonprofits with a strong track record of transparency experienced a 53% increase in contributions on average the following year compared to organizations lacking such transparency. As donation transparency improves, donor willingness to contribute also increases.

As the crypto market continues to grow, crypto donations are expected to be increasingly accepted by more organizations. The Giving Block estimates crypto donations in 2035 would be approximately $89.27 billion.

Additional reporting by Zoltan Vardai.

Magazine: Crypto is changing how humanitarian agencies deliver aid and services

Blockchain For Impact (BFI), a charity established by Polygon co-founder Sandeep Nailwal, has committed $90 million to advance biomedical research, driving healthcare innovation, and enhancing climate resilience — a development that could spur blockchain’s adoption for charity initiatives.

The Polygon co-founder’s BFI plans to allocate an additional $200 million to support the growth of healthcare startups, expand biomedical research, and strengthen the public health systems.

BFI has backed several impactful projects in India’s healthcare sector, including Solar-Powered Public Health Centers (PHCs), a floating hospital in Assam to aid communities in flood-prone areas, the UNICEF Healthcare Innovation Partnership, and relief funding during the COVID-19 crisis. Their further initiatives will place a greater emphasis on healthcare innovation and research.

Incorporating blockchain technology can make philanthropic efforts more transparent and accountable thanks to the ledger’s verifiability, according to Sandeep Nailwal, Founder of Blockchain for Impact and co-founder of Polygon.

Nailwal told Cointelegraph:

“All donations received by BFI can be tracked through blockchain. While the final transfer to non-profit programs happens through a bank, every financial step is transparently displayed on our website. All financial data can be visualized, and we publish NGO details, allowing anyone to independently verify the disbursements.”

“Separately, the $68 million we channeled for COVID-19 relief in India, including $15 million to the Government of India through UNICEF for 128 million syringes during COVID-19, followed the same approach,” said Nailwal, adding:

“Anyone, be it donors or communities, can see where the money goes. This shows up in the results: 96% of healthcare workers say care has improved, and vaccine wastage dropped 83% because refrigeration is steady.”

Source: The Given Block Annual Report

According to The Giving Block’s report, BFI exemplifies the rapid growth of crypto philanthropy, with its $90 million in donations representing 9% of all cryptocurrency contributions tracked globally in 2024.

This surge aligns with the transformative potential of digital donations to enhance transparency and efficiency in fund allocation. The same report reveals that over 70% of the top 100 US-based charities now accept crypto.

Related: Crypto giving exceeded $1B in 2024 — Report

Global charities are embracing crypto donations

Charitable organizations are increasingly embracing cryptocurrency donations, thanks to the transparency of the blockchain ledger, which makes donations publicly traceable and reduces the transaction fees of charitable transactions compared to fiat-based donations.

Beyond just the US, charities across the globe embrace crypto donations, including large charities like the UK Red Cross and Singapore Red Cross. Save the Children, a leading international nonprofit organization, disclosed that they had received $8.6 million in crypto donations so far.

Source: Save The Children Website

As cryptocurrency adoption grows, so does the need for secure and compliant solutions for nonprofits. The Given Block announced its partnership with Gemini on March 13. The organization thinks artificial intelligence can help make crypto in philanthropy more secure.

Crypto donations have the potential to enhance charitable revenue. A report from Fast Company found that nonprofits with a strong track record of transparency experienced a 53% increase in contributions on average the following year compared to organizations lacking such transparency. As donation transparency improves, donor willingness to contribute also increases.

As the crypto market continues to grow, crypto donations are expected to be increasingly accepted by more organizations. The Giving Block estimates crypto donations in 2035 would be approximately $89.27 billion.

Additional reporting by Zoltan Vardai.

Magazine: Crypto is changing how humanitarian agencies deliver aid and services

The European Union Agency for Law Enforcement Cooperation (Europol) published a report explaining how artificial intelligence and crypto affected organized crime. 

In a threat assessment report on serious and organized crime, Europol stated that AI and crypto play a role in criminal efficiency. The law enforcement organization said criminal networks have demonstrated an ability to rapidly adapt to new technology. 

The report said AI’s transformative qualities make it an attractive tool for criminals. The report said that generative AI had “lowered the barriers to entry” for digital crimes. 

The government agency said AI lets criminals craft messages in multiple languages, targeting victims more precisely and globally. It also allowed malicious actors to create malware and child sexual abuse material. 

How AI and crypto drive criminal efficiency

Europol also stated that AI’s automation capabilities have been transforming the efficiency of criminal operations. The government agency said criminals can automate their phishing campaigns using AI. Because of this, malicious actors can reach more victims with large-scale cyberattacks. 

Europol said in the report that realistic synthetic media allows criminals to deceive victims, impersonate individuals and blackmail their targets. The organization wrote: 

“The addition of AI-powered voice cloning and live video deepfakes amplifies the threat, enabling new forms of fraud, extortion, and identity theft.”

On Feb. 13, Blockchain analytics firm Chainalysis said that generative AI is “amplifying scams.” The analytics company said AI is making scams more affordable and more scalable. Chainalysis’ head of fraud products, Elad Fouk, said AI facilitates the creation of fake identities, allowing fraudsters to impersonate real users.

Apart from AI, the report also noted how blockchain-based technologies like cryptocurrency and non-fungible tokens (NFTs) have moved beyond cybercrime and are now involved in other traditional crime areas. This includes drug trafficking and migrant smuggling. 

Europol also said that more criminal schemes have emerged to steal crypto, NFTs and resources used to mine crypto. 

Related: Hacker breaks into AI crypto bot aixbt’s dashboard to snatch 55 ETH

ZachXBT says the Bybit hack shows how the industry is “cooked” 

The most recent high-profile criminal activity in the crypto space is the Bybit hack, which led to nearly $1.5 billion in losses. In a Telegram post, crypto investigator ZachXBT said the hack has been “eye-opening,” showing how the industry is “unbelievably cooked” with hacks and exploits. 

The crypto sleuth said the industry may be unable to fix itself unless the government “forcibly passes regulations that hurt our entire industry.” The investigator shared that as he helped freeze funds related to the hack, he witnessed flaws with decentralized and centralized protocols. ZachXBT wrote: 

“Several ‘decentralized’ protocols have recently had nearly 100% of their monthly volume/fees derived from DPRK and refuse to take any accountability.”

The crypto investigator said North Korean hackers laundering the funds have demonstrated the flaws of Know Your Transaction and Know Your Customer protocols. 

“Centralized exchanges end up being worse as when illicit funds flow through them a few take multiple hours to respond when it only takes minutes to launder,” ZachXBT said.

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Major cryptocurrency exchange Crypto.com came under fire following an allegedly manipulated vote leading to a massive token burn reversal on Crypto.com’s Cronos blockchain.

Crypto.com CEO Kris Marszalek took to X on March 19 to highlight the firm’s financial and regulatory stability amid the ongoing controversy over the 70 billion Cronos (CRO) token re-issuance.

Essentially canceling the 70 billion CRO token burn announced in 2021, the vote on bringing back the tokens has triggered outrage from the community, with many commentators criticizing the CEO for not addressing the issue in his new thread on X.

“So you made $1 billion profit but needed to mine 70 billion CRO instead of using those funds to buy some off the market and help your core community remain positive,” one commentator wrote.

Source: Kris Marszalek

“The largest token burn in history”

Disclosed in February 2021 in a now-deleted post on the Crypto.com blog, the 70-billion-CRO token burn was called the “largest token burn in history” with a goal to “fully decentralize the network” at the CRO mainnet launch.

“Aligned with our belief, and with the CRO chain mainnet launch just around the corner, we are fully decentralizing the chain network,” the blog post said, announcing an immediate burn of 59.6 billion tokens.

A screenshot from a now-deleted Crypto.com blog post on the 70-billion-CRO token burn. Source: Archive.today

Following the immediate 59.6-billion-CRO burn, 0.4 billion of the remaining tokens were directed to monthly burns, while another 5.9 billion CRO was sent to block rewards, and 0.9 billion CRO was allocated to Particle B for chain ecosystem development.

Why reverse the burn?

In four years following the burn, a Cronos blog post on March 2 announced a vote on the creation of a Cronos Strategic Reserve by reversing the 2021 token burn.

“In 2021, 70 billion CRO were burnt in one of the most significant burn transactions in history. Under today’s proposal, an equal number of tokens will be re-issued on Cronos POS into a Cronos Strategic Reserve escrow wallet, bringing the total supply back to the initial supply of 100 billion CRO,” the announcement said.

An excerpt from Cronos’ vote proposal on reversing the 2021 CRO token burn. Source: Cronos

Launched on March 3, the vote received lots of negative feedback from the community on social media, with many posters urging that the CRO re-issuance was the “opposite of what this community wants.”

Related: Binance announces community voting mechanism for token listings

“I hope that people vote against this, this is a terrible idea,” one commenter said.

Last-minute voters approved re-issuance

Despite notable community backlash, the vote results came in favor of a Cronos Strategic Reserve, spurring controversy and speculation over alleged vote manipulation.

“Totally manipulation to come in at the last minute and vote yes, the CDC [Crypto.com] is as centralized as a blockchain can be, and shouldn’t be since there’s no real governance when 70% of the voting power is in the CDC,” one GitHub commentator wrote.

CRO governance voting results show 70% support from the community. Source: Mintscan

According to Laura Shin’s Unchained sources, Crypto.com allegedly controls 70%–80% of the total voting power, essentially removing the need for any governance vote at all.

Following the massive backlash, Crypto.com announced an ask-me-anything (AMA) event coming on March 25, with the CRO token burn apparently becoming the main issue on the agenda.

“Looking forward to catching up with our community on Tuesday,” Crypto.com’s CEO said in a March 19 post on X, adding the hashtag “MakeCROGreatAgain.”

Cointelegraph approached Crypto.com for a comment regarding the burn reversal but did not receive a response at the time of publication.

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Bitcoin (BTC) exchanges are getting a key “deleveraging event,” which should shape future gains, new research says.

In one of its “Quicktake” blog posts on March 17, onchain analytics platform CryptoQuant revealed a $10 billion capitulation on Bitcoin futures markets.

Bitcoin sees “essential” event for BTC price rebound

Bitcoin derivatives traders have flipped firmly risk-off since BTC/USD hit its current all-time highs in mid-January.

CryptoQuant, which uses data from various major crypto exchanges, calculates that aggregate open interest (OI) on futures fell by $10 billion in just three weeks from Feb. 20 through March 4. 

“On January 17th, Bitcoin’s open interest reached an all-time high of over $33B, indicating that leverage in the market had never been this high,” contributor Darkfost writes.

The drop, he argues, “can be considered as a natural market reset, an essential phase for sustaining a bullish continuation.”

Bitcoin futures OI data for top exchanges. Source: CryptoQuant

An accompanying chart shows the 90-day rolling change in aggregate OI, highlighting the severity of the market’s U-turn following the all-time highs.

“Currently, the 90-day change in Bitcoin futures open interest has dropped sharply and now sitting at -14%,” Darkfost concludes. 

“Looking at historical trends, each past deleveraging like this has provided good opportunities for the short to medium term.”Crypto “demand crisis” emerges

Continuing, fellow CryptoQuant contributor Kriptolik eyed increasingly active derivatives markets overall since November 2024.

Related: Peak ‘FUD’ hints at $70K floor — 5 Things to know in Bitcoin this week

Stablecoin reserves across derivatives exchanges are increasing, he revealed this week, even surpassing spot markets. This, however, is no recipe for price upside.

“When we analyze the volume and circulation of stablecoins, which act as fuel in the market, we see that despite a rapid increase in total stablecoin supply since November 2024, this has not necessarily benefited the market or investors significantly,” another blog post explains.

Kriptolik described spot markets as suffering a “demand crisis.”

“Until this distribution normalizes, avoiding high-leverage (high-risk) trades may be the most prudent approach,” he added.

Exchange stablecoin reserves (screenshot). Source: CryptoQuant

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Crypto firm Bakkt’s share price plummeted over 27% on March 18 after the company revealed that two of its largest clients, Bank of America and Webull, would not be renewing their commercial agreements.

In a March 17 regulatory filing, Bakkt said it had received notice of Bank of America not renewing its commercial agreement when the deal expires on April 22. It also disclosed that the brokerage platform Webull had also decided not to renew its agreement when it ends on June 14. 

Bank of America represented 17% of Bakkt’s loyalty services revenue in the nine months ending Sept. 30, 2024, according to the filing. Webull represented 74% of the company’s crypto services revenue across the same period. 

Stocks in Bakkt (BKKT) tumbled on March 18 after the filing, and its share price closed the day down 27.28% at $9.33. BKKT saw a further decline of 2.25% to $9.12 after the bell, according to Google Finance. 

Bank of America and Webull won’t renew agreements with Bakkt, which saw its stock sell-off. Source: Google Finance

Overall, the stock is down over 96% from its all-time high of $1,063, which it hit on Oct. 29, 2021. 

Bakkt has also postponed its previously announced earnings conference twice, with the latest rescheduling slating the call for March 19. 

Bakkt was founded in 2018 by the Intercontinental Exchange, which holds a 55% stake and also owns the New York Stock Exchange (NYSE).

Related: Bakkt declares $780M full-year revenue in 2023 earnings report

At least one law firm, the Law Offices of Howard G. Smith, announced a possible class action against Bakkt, alleging federal securities violations. The potential lawsuit claims that the terminated agreements with Bank of America and Webull, combined with the rescheduled earnings call, caused Bakkt’s stock price to fall, “thereby injuring investors.” 

Bakkt, Bank of America and Webull didn’t immediately respond to requests for comment. 

In November last year, Bakkt’s share price jumped over 162% to $29.71 and continued to climb 16.4% to $34.59 after a report claimed Donald Trump’s media company was in advanced talks to acquire the firm. 

Before that, Bakkt’s parent company considered selling it or breaking the firm into smaller entities in June, according to a Bloomberg report. 

It also received a notification from the NYSE in March that it wasn’t in compliance with the stock exchange’s listing rules after its stock spent 30 days closing below $1 on average.

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US federal authorities have arrested and indicted a filmmaker, accusing him of spending $11 million given by Netflix to gamble on stocks and crypto instead of using it to finance a science fiction TV show.

The Department of Justice said in an indictment unsealed in a Manhattan federal court on March 18 that it had charged Carl Erik Rinsch with fraud and money laundering, and he could face upward of 20 years in prison.

The DOJ alleged that Netflix, which wasn’t named in the complaint, gave Rinsch $11 million in March 2020 to finance the storyboarding, pay actors and edit footage for the sci-fi TV show “White Horse” — later renamed “Conquest.”

Instead, prosecutors allege that Rinsch moved about $10.5 million of the funds into a brokerage account where he “made a number of extremely risky” trades, including call options on a biopharmaceutical company, which lost him over $5.5 million.

Rinsch was losing Netflix’s money while assuring the streaming giant that Conquest was “moving forward really well,” according to the indictment.

Prosecutors said that the Los Angeles filmmaker had better luck with crypto, making several million dollars trading cryptocurrency in February 2021, which he used to purchase nearly $3.8 million worth of furniture and antiques, five Rolls-Royces, a Ferrari, watches and luxury clothing items worth over $3 million.

Excerpt of the DOJ’s lawsuit filed against Carl Erik Rinsch. Source: DOJ

The US Attorney’s Office didn’t cite Netflix as the streaming company behind Conquest in the indictment, but The New York Times reported on Netflix’s dispute with Rinsch over Conquest in November 2023, where it said Netflix canceled the show in early 2021 after Rinsch’s behavior turned “erratic.”

The Times reported that Netflix paid Rinsch $55 million, while prosecutors alleged he received $44 million to produce the show, which is yet to air.

US prosecutors also accused Rinsch of spending nearly $1.8 million on credit card bills and $1 million in legal fees to sue Netflix for even more money and to cover costs related to his divorce.

Related: Microsoft warns of new remote access trojan targeting crypto wallets

Rinsch was charged with one count of wire fraud, one count of money laundering and five counts of engaging in monetary transactions in property derived from specified unlawful activity.

The fraud and money laundering charges each carry a maximum sentence of 20 years, while each of the monetary transactions charges carries a maximum sentence of 10 years.

Rinsch was arrested on March 18, and his case was assigned to New York federal court Judge Jed Rakoff.

The Associated Press reported on March 18 that Rinsch’s lawyer, Annie Carney, declined to comment outside court.

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The North Dakota Senate has passed a bill that regulates crypto ATMs while re-adding a provision capping daily transactions at $2,000 per user that was originally dropped by the state’s House.

The state’s Senate passed House Bill 1447 in a 45-to-1 vote on March 18. The bill was introduced to the state’s legislative assembly on Jan. 15 and aims to protect residents from scams by introducing a slate of new guidelines for crypto ATMs and their operators.

The latest version of the bill passed by the Senate requires crypto ATM and kiosk operators to be licensed in the state as money transmitters, limits customer withdrawals across their network of ATMs to $2,000 per day, and issues fraud warning notices.

Initially, the bill limited crypto ATM customer transactions to $1,000 a day, but a House committee last month loosened the limits, with a $2,000 a day limit for the first five transactions within 30 days.

Now, the Senate has capped the transaction limits at $2,000. The bill will need to be sent back to the House to vote on the changes before North Dakota Governor Kelly Armstrong can either veto or sign the bill into law.

The bill would also require operators to use blockchain analytics to monitor for suspicious activity, such as fraud, and report it to the authorities, and to provide quarterly reports on kiosk locations, names and transaction data.

The latest version of House Bill 1447 requires local crypto ATM operators to be licensed in the state as money transmitters, among other requirements. Source: North Dakota Legislative Assembly

During a North Dakota House Industry, Business and Labor committee hearing on Jan. 22, the bill’s primary sponsor, House Representative Steve Swiontek, said that crypto ATMs currently lack protection measures, which has “allowed criminals to exploit them for theft.”

Nebraska Governor Jim Pillen had signed similar legislation into law on March 13, the Controllable Electronic Record Fraud Prevention Act, which is designed to help combat fraud.

Meanwhile, US Senator Dick Durbin of Illinois, who formerly chaired the Senate Judiciary Committee, proposed similar federal legislation on Feb. 25.

Durbin cited a story from a constituent who fell prey to a scammer claiming the authorities had issued a warrant for their arrest but could pay a fine through a $15,000 deposit at a crypto ATM to avoid jail as motivation for introducing the new law. 

Related: ‘Victim-blaming’ Americans can deter crypto scams reporting — Regulator

Last September, the Federal Trade Commission reported fraud losses at Bitcoin (BTC) ATMs had increased nearly tenfold from 2020 to 2023 and topped $65 million in the first half of 2024, with consumers aged 60 and older three times more likely to fall victim.

Coin ATM Radar data shows that the US still has the most Bitcoin ATMs, with 29,822 machines representing 78% of the global market.

The United States is the world leader in the number of Bitcoin and crypto ATMs. Source: Coin ATM Radar

Canada ranks second, at 9.2% of the market and 3,486 crypto ATMs, while Australia is third with 1,613 crypto ATMs, representing 4.3% of the market. 

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