California caps Bitcoin ATM transactions to fight growing scam problem
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Jim Meduri lost $15,000 when scammers tricked him into sending bail money through a Bitcoin ATM, pretending his son was arrested. He got most of the money back.
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Scammers are increasingly using Bitcoin ATMs to defraud victims out of thousands of dollars. The machines provide an easy way to anonymously buy cryptocurrency with cash.
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California passed a law limiting Bitcoin ATM transactions to $1,000 per person daily to help crack down on fraud. The law also caps fees at 15% of the transaction starting in 2025.
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Victims say limits will give people more time to realize they're being scammed before large sums are taken. But crypto ATM operators argue the laws will harm their industry.
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Law enforcement has been able to recover some stolen funds by tracking transactions, but it's difficult and not always possible, especially if the money ends up overseas.