NC DOJ investigates crypto kiosk companies amid fraud concerns

The North Carolina Department of Justice is investigating companies operating cryptocurrency kiosks within the state, Attorney General Jeff Jackson confirmed to WRAL. This inquiry arose during discussions about upcoming state legislation targeting crypto ATMs.

The investigation follows reports of individuals losing significant sums through scams involving crypto machines. A woman from Johnston County shared with WRAL that she lost her life savings due to a jury duty scam that used a crypto ATM. Additionally, public records from Harnett County indicate a man lost over $30,000—described as nearly all his savings—to a similar device.

Attorney General Jackson expressed skepticism regarding the legitimacy of many crypto ATM operations in North Carolina. He noted that the Department of Justice is pursuing both the fraud perpetrators and the industry enabling such scams. Jackson stated that these companies are aware their machines are primarily used for fraudulent activities.

Consumer Reports has also highlighted that online crypto exchanges often fail to clearly inform users that cryptocurrencies lack the federal protections afforded to bank deposits, raising broader concerns about consumer safeguards in the crypto space.

The ongoing investigation and proposed legislation aim to address the vulnerabilities consumers face when using crypto kiosks and exchanges in North Carolina.