NASHVILLE, Tenn. (WKRN) — A bill moving through the Tennessee legislature would ban cryptocurrency ATMs across the state. Supporters of the measure said the machines have become a growing tool for scammers targeting older adults.

The machines, often found in gas stations or convenience stores, allow people to insert cash and convert it into digital currency. Some say scammers are increasingly directing victims to use those machines to quickly send money that is difficult to recover.

⏩ Read today’s top stories on wkrn.com

“An older adult will get a call,” Makayla McCree, Associate State Director of Advocacy for AARP Tennessee, said. “Sometimes it’s a love scam or they’re saying, ‘Hey, something is happening to me. I need some money fast.’ Or they’re receiving an email or a call saying it’s a law enforcement officer and they have a warrant out for their arrest … They guide them over the phone to the nearest cryptocurrency ATM.”

McCree said over 80% of the transactions used in these machines have been fraudulent. Once the money is deposited, it is converted into cryptocurrency and sent to a digital wallet, which is often controlled by the scammer. Law enforcement officials say recovering the money can be extremely difficult.

“In Putnam County, I believe two days ago, they had a lady that fell victim of $300,000 that she put into a Bitcoin ATM machine,” Cumberland County Sheriff Casey Cox previously told lawmakers.

Unlike traditional bank transactions, cryptocurrency transfers cannot easily be reversed.

“They are designed to be irreversible,” Cox said. “The money is almost impossible to recover. From a law enforcement perspective, these cases are extreamely difficult to investigate and hard to resolve.”

VIDEO | THP warns of circulating scam text

The proposed legislation would make it illegal to operate cryptocurrency ATMs in Tennessee. If passed, operating one would become a Class A misdemeanor.

The law would take effect July 1 if approved by lawmakers and signed by the governor. Tennessee would become the second state in the country to ban crypto atm.

Copyright 2026 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

For the latest news, weather, sports, and streaming video, head to WKRN News 2.