TRM Labs: $160 Million in Illegal Funds Processed by Crypto ATMs Since 2019
Crypto ATMs are more vulnerable to fraud and money laundering due to weaker KYC and AML protocols, and have processed at least $160 million in illicit funds so far since 2019, according to a new report from TRM Labs. In 2023 alone, the percentage of illegal transactions in cryptocurrency ATMs reaches 1.2% of their total volume, compared to just 0.63% for the crypto ecosystem as a whole. The report also reveals that more than $30 million of illicit funds in 2023 are linked to known fraudulent addresses, emphasizing the role of crypto ATMs in facilitating fraud schemes. The findings come at a time when global regulators are stepping up scrutiny of the cash-to-cryptocurrency space. In Germany, authorities recently seized 13 unauthorized Bitcoin ATMs and confiscated nearly €250,000 in cash, underscoring their ongoing efforts to curb illegal activity associated with these machines.
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