Rhode Island proposes bill to regulate cryptocurrency kiosks

Timmons Roberts, a professor at Brown University, shared his experience of getting scammed through a cryptocurrency kiosk. On April 16, 2024, he lost $2,200 to a scammer pretending to be a federal marshal. Roberts spoke to state lawmakers, saying he wished he had been warned about such scams. Westerly Police Chief Paul Gingerella noted that many residents in Westerly have lost significant money to these scams, with some individuals losing up to $40,000 in just two days. He expressed frustration at the lack of cooperation from machine owners in recovering these funds. In 2023, the FBI reported that Americans lost over $5.6 billion to cryptocurrency fraud, including $2 million from Rhode Islanders. Matthew Netto from AARP Rhode Island explained that many scams involve cryptocurrency ATMs located in various public places. A proposed bill aims to regulate the cryptocurrency industry and protect consumers. Initial plans included requiring cryptocurrency operators to refund transactions and fees related to scams. Some companies in the crypto-kiosk industry opposed this, leading to negotiations for a compromise. Roberts detailed how he was tricked into thinking he owed a fee for missing jury duty. The scammer instructed him to use a CoinStar machine for the payment. Only when he returned to the bank for more cash did he realize it was a scam. Legislators are now discussing ways to protect consumers from these types of scams and ensure that those affected can recover their losses.