A Calgary retiree was directed to deposit more than $12,000 cash into machines she did not understand as part of an elaborate cyber scam. Brenda Smith, 76, suffered a stroke months prior that affected her cognitively. They’re so convincing, and unfortunately I was vulnerable,
Smith said, noting that the fraudster walked her through the deposit process step-by-step.
While cryptocurrency ATMs look similar to traditional banking terminals, they allow users to deposit cash and instantly convert it into Bitcoin or other digital assets before transferring funds to a virtual wallet anywhere in the world.
AUSTRAC Suspends Cryptolink and Enforces Strict Oversight
AUSTRAC chief executive Brendan Thomas announced that Cryptolink was forced to stop operating its 96 cryptocurrency ATMs for three months, resulting in the temporary loss of its Virtual Asset Service Provider registration.
The regulatory action stems from what the agency termed an unmanageable level of risk. AUSTRAC stated that while Cryptolink met initial conditions under an enforceable undertaking—which included paying a $56,340 fine in October 2025—the company subsequently failed to satisfy basic reporting requirements, specifically concerning threshold transaction reports for movements of $10,000 or more.
“AUSTRAC has ongoing concerns about the company’s ability to manage high-risk transactions through its CATMs.”
Brendan Thomas, AUSTRAC chief executive
Thomas added that Cryptolink did not respond to official information requests, leaving regulators no alternative but to halt operations. Although Cryptolink previously acknowledged lapses in its transaction reporting, the company maintained that it implemented safeguards including customer warnings, educational messaging, and targeted monitoring to deter illicit activity.
Canadian Regulators Detail Fraudster Reliance on Bitcoin ATMs
Across the Pacific, Canadian financial intelligence paints a similarly stark picture. According to an internal analysis by FINTRAC obtained via access-to-information requests, Bitcoin Automated Teller Machines have become the primary method criminal networks use to extract and launder funds from domestic and international victims.
“FINTRAC judges that Bitcoin Automated Teller Machines (BATMs) will continue to be the primary method that domestic and international criminal perpetrators of fraud will use to obtain funds from their victims and to launder those proceeds within the cryptocurrency ecosystem.”
FINTRAC, federal financial intelligence analysis
The industry has expanded rapidly since the first machine appeared in a Vancouver coffee shop in 2013. Canada now hosts approximately 3,600 crypto ATMs, contributing to a global network exceeding 39,000 machines.
Rising Financial Losses and Regulatory Gaps
Despite their widespread use by fraudsters, oversight remains fragmented. In Canada, crypto ATM operators are classified simply as money services businesses, placing them under federal anti-money laundering rules that mandate Know Your Customer verification for transactions exceeding $1,000. However, the regulatory framework lacks fee caps and transaction limits.
Law enforcement tracking indicates that available statistics represent only a fraction of total offenses. Major police forces across Canada do not systematically track crypto ATM-related fraud, leaving the Canadian Anti-Fraud Centre as the primary national repository.
| Reporting Period | Recorded Losses via Crypto ATMs |
|---|---|
| Full Year 2024 | $14.2 million |
| First Three Months of 2025 | $4.2 million |
With 2025 losses tracking above the previous year’s figures, financial regulators and intelligence agencies indicate they will maintain heightened scrutiny over digital currency kiosks as transnational fraud syndicates continue to target vulnerable populations.
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