Fraudsters use crypto ATMs to launder millions from Canadian victims
A CBC News investigation has uncovered how cryptocurrency ATMs in Canada are being exploited by scammers to extract and launder money from victims nationwide. These machines, legal and widespread, allow quick conversion of cash to crypto that can be sent globally. Victims like a Calgary retiree have lost thousands, highlighting vulnerabilities in the system.
Brenda Smith, a 76-year-old retiree from Calgary, fell victim to an elaborate cyber scam last year after suffering a stroke that affected her cognition. Directed by the scammer, she deposited more than $12,000 in cash into two cryptocurrency ATMs. "They're so convincing, and unfortunately I was vulnerable," Smith said. "He did walk me through what to do, and so of course, I just deposited the money and never really gave it a second thought." She later described the loss as devastating, noting, "When you're a senior on pensions, that's a lot of money."
The first crypto ATM appeared in a Vancouver coffee shop in 2013, praised for innovation. Today, Canada hosts about 3,600 such machines— the highest per capita globally at nearly 91 per million residents—out of 39,000 worldwide. These devices convert cash to cryptocurrencies like Bitcoin, which can then be sent to wallets anywhere, making recovery difficult.
CBC News's three-part series, "Feeding Fraud: The Crypto ATM Problem," drew from interviews with law enforcement, regulators, experts, and victims. Canada's financial intelligence agency, FINTRAC, in a February 2023 analysis obtained via access to information, concluded that crypto ATMs are the primary method for fraudsters to obtain funds and launder proceeds. The report states: "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."
Despite operating legally as money services businesses, these ATMs face no industry-specific regulations on fees or transaction limits, though they must follow anti-money laundering rules like Know Your Customer for transactions over $1,000. The Canadian Anti-Fraud Centre reported $14.2 million in losses via crypto ATMs in 2024, with $4.2 million in the first three months of 2025, on pace to exceed that. Experts estimate only 5-10% of incidents are reported, calling official figures the "tip of the iceberg."
Toronto police Det. David Coffey, from the financial crimes unit, said reports involving crypto ATMs arrive daily, but investigations are challenging: "As soon as it's sent away, that money is across the globe." RCMP Sgt. Gordie Jones noted a noticeable increase in their use for scams like romance and CRA impersonations. Blockchain firm TRM Labs reported $1.5 billion processed in Canada from early 2025 to mid-August, linking $160,000 to illicit activity, though the true figure may be 85% higher due to underreporting.
Experts attribute the appeal to speed, low barriers—no bank account needed for small transactions—and irreversibility. University of Toronto finance professor Andreas Park said: "The low barrier of using them and getting access to crypto assets is exactly what facilitates crime."