Tasmania Police have revealed a stunning development in Australia’s nationwide crackdown on cryptocurrency ATM fraud, every one of the state’s top 15 crypto ATM users has been scammed. The victims lost a total of 2.5 million Australian dollars (around $1.6 million), with more than a third—approximately $592,000—funneled directly into crypto ATMs.

Detective Sergeant Paul Turner said scammers often directed victims to crypto ATMs after traditional banks flagged suspicious activity. The victims, many lured by fake investment and romance schemes, were manipulated with urgent and intimidating tactics. Authorities say the consequences have been devastating, with some victims forced to sell assets or delay retirement.

The discovery comes as AUSTRAC, Australia’s financial intelligence agency, and the Federal Police lead a national enforcement initiative against crypto-related crimes. In June, AUSTRAC introduced new regulations and transaction caps for crypto ATM operators, further signaling the government’s aggressive stance.

Tasmania has seen a rapid rise in crypto ATM installations—from just one in 2021 to over 20 today, according to Coin ATM Radar. Nationwide, Australia ranks third globally in total crypto ATMs, behind only the US and Canada, with over 1,890 kiosks now operating—up from just 67 in August 2022.

Major players like Localcoin, Coinflip, and Bitcoin Depot dominate the market, but authorities warn that the growth comes with increased fraud risks.

Globally, crackdowns are also intensifying. New Zealand recently banned crypto ATMs entirely and capped overseas cash transfers to fight money laundering. In Spokane, Washington, the city council has banned all crypto ATMs and is removing existing kiosks due to rampant fraud concerns.