According to Odaily Planet Daily, according to the latest report from TRM Labs, due to the general lack of strict KYC and AML protocols, crypto ATMs are more vulnerable to fraud and money laundering, and have processed at least $160 million in illegal funds since 2019.
In 2023 alone, cryptocurrency ATMs processed 1.2% of their total transactions, while the proportion of illegal transactions in the entire crypto ecosystem was only 0.63%.
The report also revealed that more than $30 million in illicit funds in 2023 were linked to known scam addresses, highlighting the role of crypto ATMs in facilitating fraud schemes.
The discovery comes as regulators around the world step up scrutiny of the cash-to-cryptocurrency sector. In Germany, authorities recently seized 13 unlicensed Bitcoin ATMs and confiscated nearly €250,000 in cash.
