The Wood County Sheriff’s Office is urging state regulations on cryptocurrency ATMs following a surge in scam-related cases, proposing deposit limits and transaction holds to curb fraud.

The Wood County Sheriff’s Office is demanding stricter state oversight of cryptocurrency ATMs after a sharp rise in fraud cases tied to the machines. Authorities say the lack of safeguards has turned these kiosks, often tucked into convenience stores and gas stations, into hotbeds for scams, leaving victims with little recourse.

Lieutenant Scott Goldberg, a lead investigator, reports a two-year spike in cases where victims, often duped by high-pressure schemes, deposit thousands into crypto ATMs only for the funds to vanish into untraceable digital wallets. “We’re seizing cash from these machines as evidence, but it can sit for months while courts decide the case,” Goldberg said. “Meanwhile, the companies behind these ATMs are fighting us to release the money. We won’t back down.”

The Sheriff’s Office is pushing for two key reforms: daily deposit limits and mandatory holds on large transactions, similar to banking protocols. Goldberg argues such measures would give victims a critical window to report fraud before their money is irretrievably converted into crypto.

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The call for regulation highlights a growing tension between law enforcement and the loosely governed crypto industry. While proponents tout the machines as gateways to financial innovation, critics warn their anonymity fuels crime. As Wood County takes a stand, the debate over balancing innovation with consumer protection is heating up and other jurisdictions may soon follow.