According to Odaily, a recent report by TRM Labs reveals that cryptocurrency ATMs are increasingly vulnerable to fraud and money laundering due to often lacking stringent KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols. Since 2019, these machines have processed at least $160 million in illicit funds. In 2023 alone, the proportion of illegal transactions handled by crypto ATMs reached 1.2% of their total transaction volume, compared to 0.63% for the entire cryptocurrency ecosystem. The report also highlights that over $30 million in illegal funds in 2023 were linked to known scam addresses, underscoring the role of crypto ATMs in facilitating fraudulent schemes. This finding comes as global regulators intensify scrutiny over the cash-to-crypto sector. In Germany, authorities recently seized 13 unlicensed Bitcoin ATMs and confiscated nearly €250,000 in cash.