Massachusetts residents faced significant losses due to Bitcoin ATM scams, with estimates reaching at least $77 million last year. Despite a proposed bill in the State House aimed at curbing such fraudulent activities, it remains stalled, raising concerns that victims will continue to be exploited into 2026.
One notable case involves 86-year-old Janice Peltz, who fell victim to a scammer impersonating a bank representative. The scammer kept her engaged on the phone for hours, manipulating her into withdrawing $18,000 in cash, which she then deposited into a Bitcoin ATM. It was a harrowing experience that extended into a lengthy recovery journey for her younger brother, who ultimately succeeded in securing a refund from Bitcoin Depot, the operator of the ATM used in the transaction. “I opened the envelope and I couldn’t… I was so blown away by what was inside it, which was a check for $18,000,” Peltz expressed, noting her surprise at retrieving her funds—a privilege not afforded to many other victims.
Currently, a legislative proposal that would set daily transaction limits, cap fees, and provide refunds for fraud victims has been stagnating in the Massachusetts legislature for nearly a year. In stark contrast, Maine’s legislature acted quickly, passing an emergency bill over the summer that implemented similar strictures on Bitcoin ATM operations. This proactive legislation not only imposed transaction limits and fee caps but also included provisions for victim compensation. Not long after these measures were enacted, the Maine Bureau of Consumer Credit Protection announced a settlement of nearly $2 million with Bitcoin Depot. The bureau’s superintendent, Linda Conti, emphasized their commitment to ensuring that victims of scams are compensated, stating, “In order to get a license here, you’re going to have to make good on the people who have been victimized at your kiosk machines.” Following the settlement, Bitcoin Depot voluntarily withdrew all its machines from Maine.
When questioned about Massachusetts’s slower legislative response, Representative Thomas Stanley, a sponsor of the proposed bill, indicated that expedience does not always guarantee effective solutions. “Just because a state’s doing it quickly doesn’t mean they’re doing it the best,” he remarked. His bill, which mirrors some aspects of Maine’s regulations, seeks to establish a commission that would further explore recommendations for preventing such scams, rather than immediately setting up a compensation framework for victims. Initially filed in February 2025, the bill has garnered approval from the finance committee, leaving supporters hopeful for its passage this year.
Stanley pointed out that the legislative process is complex, saying, “The system is just set up this way because people come in with good ideas, but finding the proper, the best solution isn’t the easiest because we don’t want to create unintended consequences that create more problems.”
As for Peltz, she is urging state lawmakers to prioritize the issue, stressing the urgent need for action to address what she views as a critical problem. Meanwhile, Bitcoin Depot has yet to respond to requests for comment regarding its operations and the ongoing scams involving its ATMs.
