Murfreesboro police helped provide evidence leading to Tennessee’s ban on Bitcoin ATMs
The Murfreesboro Police Department (MPD) was instrumental in providing essential data that helped Tennessee become only the second state in the nation to completely ban Bitcoin cryptocurrency machines.
The Tennessee General Assembly passed House Bill 2505 (Public Chapter 766), which was signed by the governor and took effect on July 1, 2026.
MPD’s Criminal Investigations Division provided investigative evidence revealing that victims in Murfreesboro lost nearly $4.1 million in six months due to crypto kiosk scams. Led by Fraud Detective Sergeant Tommy Massey, the Fraud Unit uncovered scams where criminals impersonated law enforcement officers, frightening elderly residents with fake warrants and instructing them to withdraw money from their bank accounts and use Bitcoin ATM machines to “clear” their names.
Massey said that once money is uploaded to a crypto wallet, recovering the funds is nearly impossible.
“The new state law benefits both law enforcement and users,” Massey said. “It reduces the number of cryptocurrency scams. These machines also charge exorbitant fees, up to 40 percent, to convert currency into Bitcoin.”
Approximately 30 businesses in Murfreesboro have been identified as having Bitcoin ATMs. Detectives and officers will visit these businesses to ensure compliance with the new state law. Business owners will be educated about the Bitcoin machine ban, and those who do not comply may face state charges. The penalty for non-compliance is a Class A misdemeanor for knowingly installing, permitting, placing, or operating a virtual currency kiosk. Violators may face a maximum penalty of up to 11 months and 29 days in jail and a fine of up to $2,500.
Tennessee Attorney General Jonathan Skrmetti announced earlier this month that a federal court has allowed Tennessee’s ban on cryptocurrency ATMs to go into effect.
