LAYTON, Utah (KUTV) — The Layton City Council adopted an ordinance to prohibit cryptocurrency ATMs or bitcoin teller machines within city limits.
The decision followed an investigation that identified approximately $2 million in fraud-related losses between 2021 and 2025.
“In many of those cases, suspects pressure victims into depositing cash into a cryptocurrency kiosk,” the police department said. “The funds are then transferred directly to a suspect’s digital wallet, making recovery difficult.”
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Common scams include:
- Impersonation of law enforcement or government officials
- Investment and romance scams
- Business email compromise
- Tech support fraud and sextortion
Scammers often target individuals who are unfamiliar with cryptocurrency or are placed under urgent or threatening circumstances.
The police department said the image below depicts a real-world incident in which a victim was defrauded using one of the aforementioned scams into depositing a “significant amount of money” into one of the 18 cryptocurrency kiosks in the city.
The police department posted a flyer warning about fraud next to the machine.
Cryptocurrency scams often involve criminals pressuring victims to deposit cash into a kiosk, like the one shown in the photo. (Photo: Layton City Police Department)
The ordinance applies to physical kiosks and does not restrict personal use of cryptocurrency.
Existing machines must be removed within 60 days.
“Residents are urged to be cautious of any request to make payments using cryptocurrency — especially if accompanied by urgency, threats, or instructions to keep the transaction secret, the police department said.
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