What Happened
Cryptocurrency ATMs across Wyoming have become a major tool for scammers, with residents losing more than $4.6 million in fraud cases in the state’s three largest cities alone. The actual losses are likely higher, as many incidents go unreported.
These machines, which allow users to buy and transfer cryptocurrency instantly, have become the preferred method for con artists to steal money from victims. Once funds are deposited into a scammer’s crypto wallet, the money can be split and moved through dozens of accounts within seconds, making recovery nearly impossible.
Key Details
Scale of the Problem
Wyoming has approximately 45 crypto ATMs across the state, with 11 located in Cheyenne alone. The machines themselves are legal, but criminals have exploited them as a virtually untraceable escape route for stolen funds.
| City | Estimated Losses |
|---|---|
| Gillette | $3 million |
| Cheyenne | $600,000 (2025) |
| Sheridan | $1.5 million (2-year period) |
| Total | $4.6+ million |
How the Scams Work
According to Cheyenne Police Sgt. Kevin Malatesta, these scams have evolved from gift cards and money orders to cryptocurrency ATMs because there’s no human gatekeeper to question suspicious behavior.
Common scam tactics include:
- Impersonating law enforcement claiming the victim has a warrant
- Fake emergency calls about family members needing bail money
- Threatening victims with arrest over unpaid bills
- Staying on the phone throughout the transaction to prevent victims from thinking clearly
Why Recovery Is Impossible
Sheridan Police Officer Liz Shafer reported zero success stories in recovering stolen funds. Once money enters a crypto wallet, it’s instantly transferred through multiple accounts, creating a digital trail that leads overseas.
“I can’t go there,” Shafer said about tracking funds to foreign countries like Jamaica. “And the FBI is so overwhelmed with these cases that the only ones they’re really looking into have to total in the six figures.”
Proposed Legislation
Campbell County Republican Ken Clouston (R-Gillette) plans to sponsor a bill requiring crypto ATMs to follow rules set by the state banking division. Proposed protections include:
- Daily transaction limits to prevent large single-day losses
- Warning labels on machines about common scam tactics
- Clear disclosure of transaction fees
- Mandatory consumer protection messaging
How to Report Fraud
Victims of crypto ATM scams should report incidents to:
- FBI Internet Crime Complaint Center: www.ic3.gov
- FTC Report Fraud: reportfraud.ftc.gov
- CFTC: cftc.gov/complaint
- SEC: sec.gov/tcr
What’s Next
The proposed legislation will be considered during Wyoming’s upcoming legislative session. Law enforcement officials continue to advocate for stronger regulations while running public education campaigns about common scam tactics.
Sources
Last updated: 2026-02-01 08:55 UTC