The incident involved a crypto ATM, which scammers instructed a local to use for sending money. That case helped push council members to act early, hoping to protect their residents from similar schemes.
The new rules require any crypto kiosk in town to be registered with the Department of Public Safety. Operators must also apply for a business license and provide written warnings on the machines about the risks of fraud and irreversible transactions.
Several other states are also taking action. Arizona, Nebraska, California, and Washington have all stepped in this year to add restrictions or outright bans on certain types of crypto ATM operations.
Carson Gat, a representative from Coinflip—a Chicago-based digital currency ATM operator—attended the meeting to give his perspective. He told the council about a time he personally helped stop an elderly woman from getting scammed at one of their machines.
Gat said Coinflip has explored similar limits on new users to reduce fraud, since most scams happen during a customer’s first visit. Coinflip has been operating in Michigan since 2019 and was granted a money transmitter license in April.
While the company didn’t oppose the town’s new rules, it did highlight the importance of finding a balance between access and safety. Gat’s appearance also added weight to the council’s concern that this type of scam isn’t just theory—it’s happening.
This move by Grosse Pointe Farms comes after Michigan Attorney General Dana Nessel issued a statewide alert about crypto ATM scams back in April. Nessel’s office has warned residents to stay away from machines when someone instructs them to deposit money under pressure.
Featured image from Unsplash, chart from TradingView
