AUGUSTA (WGME) — Wednesday is the ultimate day for Maine residents who misplaced money to scammers via sure bitcoin kiosks to file a claim for a share of a $1.9 million settlement.
State regulators say the settlement with cryptocurrency ATM operator Bitcoin Depot is designed to compensate shoppers who have been defrauded between 2022 and 2025. Officers say victims have been usually instructed by scammers to transform money into cryptocurrency at kiosks and ship it to digital wallets managed by fraudsters.
Claims have to be submitted via the Maine Bureau of Consumer Credit Protection by the top of the day Tuesday, April 1, 2026. You can be taught extra and file a claim HERE.
State officers count on to start issuing refunds in Could 2026, in any case claims have been reviewed. The quantity of every refund will depend upon the variety of legitimate claims submitted and verified losses.
Past restitution, the settlement additionally requires Bitcoin Depot to comply with Maine’s shopper safety legal guidelines and function as a licensed money transmitter within the state. Whereas the corporate’s web site doesn’t presently record kiosk places in Maine, the CBS13 I-Team has beforehand documented their presence right here.
Bitcoin ATM scams are one of many fastest-growing types of fraud within the nation, with information exhibiting it is price victims lots of of tens of millions of {dollars} every year. The difficulty has additionally had actual penalties for Mainers.
A Bitcoin Depot kiosk in Maine (WGME)
How The Scam Works
When Mike Drake’s cellphone rang final April, the voice on the opposite finish gave the impression of a lifeline.
The caller claimed to be from his financial institution’s fraud division with an pressing warning: his money was in danger, and the one technique to safe it was to maneuver it into cryptocurrency.
“He was giving instructions, how a lot to take out and it needed to be in money,” Drake mentioned. “It was very controlling and he was always speaking and this went on for hours.”
The caller stayed on the cellphone as Drake withdrew money and was directed to a comfort retailer in Bangor, the place a bitcoin ATM was positioned inside. Drake says the scammer guided him step-by-step telling him the place to show, when to enter the shop and the best way to use the machine.
For hours, Drake mentioned he fed invoice after invoice into the kiosk — greater than $20,000 in whole.
“I wasn’t greedy how a lot money I used to be placing into this machine,” Drake mentioned. “It was like thoughts management and, you realize, I believe to myself I am not precisely a silly man. How did I fall for this?”
By the point Drake realized one thing was flawed, it was too late. The scammers already had the cryptocurrency, and the money he inserted into the machine was gone.
“It’s nearly as if these machines are designed for this sort of fraud,” Drake mentioned.
A “Good Confederate” for Criminals
In line with information obtained by the CBS13 I-Workforce, reported losses from bitcoin ATM scams have skyrocketed nationwide — leaping from about $12 million in 2020 to greater than $333 million via November of final 12 months.
State regulators imagine these figures doubtless understate the true scope of the issue.
“When the magnitude of this lastly comes out, it is going to be breathtaking,” Ed Myslik with the Maine Bureau of Client Credit score Safety mentioned. “I believe it’s billions and billions of {dollars}. Hundreds of individuals in Maine alone have been affected.”
Myslik says cryptocurrency know-how makes it simple for scammers to remain nameless and transfer money rapidly utilizing so-called “digital wallets.”
“As soon as they provide an image of that QR code to the sufferer, these funds can be transferred to the prison with none verify in any respect,” Myslik mentioned.
That modified final spring, when Maine enacted the Money Transmission Modernization Act, which included a first-in-the-nation provision often known as the “unhosted wallets” rule. It requires cryptocurrency firms to confirm that the digital pockets receiving funds truly belongs to the client.
Added Client Protections
Lawmakers additionally accepted a separate, extra focused legislation final 12 months aimed particularly at additional regulating cryptocurrency kiosks.
Key provisions embody:
- Day by day transaction limits: Prospects could not deposit or withdraw greater than $1,000 per day at a digital forex kiosk
- Payment caps: Kiosk operators could cost not more than $5 or 3% of the transaction quantity, whichever is bigger
- Licensing necessities: Kiosk operators have to be licensed as money transmitters underneath Maine legislation
- Refunds for fraud victims: Operators should difficulty full refunds, together with charges, for transactions made inside 90 days of a buyer’s first kiosk use if the client was induced by fraud or misleading practices and information a report with legislation enforcement inside one 12 months.
State officers say enforcement of the legislation has already prompted some kiosk operators to tug their machines out of Maine somewhat than comply.
“We’ve got seen a discount in enterprise and a discount in curiosity in working kiosks,” Myslik mentioned. “I have never seen machines are available in to take the place of these machines that the corporate took out.”
The best way to Shield Your self
State and federal officers warn that scammers usually strain victims to behave rapidly and demand on being paid via cryptocurrency, reward playing cards or wire transfers.
Here is some simple technique to keep away from falling sufferer:
- Be suspicious of urgency. Scammers usually claim instant motion is required to keep away from arrest, fines or account shutdowns.
- No respectable enterprise or authorities company calls for cryptocurrency. Requests to pay taxes, charges or money owed with bitcoin or different digital forex are a significant purple flag.
- Don’t take directions from strangers. If somebody tells you to make use of a bitcoin or cryptocurrency ATM, cease and confirm the request with a trusted supply.
- Discuss to somebody you belief. Scammers regularly goal people who find themselves remoted or embarrassed to ask for assist.
- Report suspected scams. Victims and potential victims are inspired to contact native legislation enforcement, the FBI’s Internet Crime Complaint Center, Maine’s Bureau of Consumer Credit Protection and the AARP Fraud Watch Network.
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