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Tennessee Conservative News [By Paula Gomes] –
The Tennessee Attorney General’s Office announced on Tuesday that cryptocurrency ATMs will no longer be allowed to operate within the state after an attempt to block a new law failed.
Two crypto companies – GPD Holdings, LLC, dba CoinFlip, and Charles Wernicke, dba Private IT Corporation – filed a lawsuit and also sought to obtain a temporary restraining order to prevent the legislation from taking effect by July 1st but the U.S. District Court denied the motion saying that the plaintiffs failed to meet the legal standard for such injunctive relief.
Sponsored by House Speaker Cameron Sexton (R-Crossville-District 25) and Senator Jack Johnson (R-Franklin-District 27), and signed into law by Governor Bill Lee, House Bill 2505 / Senate Bill 2251, now Public Chapter 766, makes it a Class A misdemeanor to knowingly install, permit, place, or otherwise operate a virtual currency kiosk in Tennessee.
The Tennessee General Assembly heard testimony earlier this year about the use of crypto ATMs in scams targeting Tennesseans in ever growing numbers. Victims nationwide have lost millions of dollars, with 86 percent of the scams targeting those over the age of 60.
The Murfreesboro Police Department alone reported nearly $4 million lost in crypto scams using the machines.
According to AARP, the law is “great step forward to help protect older Tennesseans against one of today’s most pervasive scams.”
AARP Tennessee State President Gerre Currie commended Governor Bill Lee and bill sponsors, along with Tennessee lawmakers who voted in unison to support the legislation’s passage.
Tennessee is only one of two states in the country that has sought to crack down on cryptocurrency ATMs.
While the plaintiffs seeking to block the law demonstrated that their businesses would suffer economically as a result of the changes to Tennessee statute, the Court found that the public interest in stopping fraud outweighed that harm. The Court further decided that the plaintiffs case was unlikely to succeed.
“The General Assembly recognized that these machines benefit fraudsters at the expense of everyday citizens, and the Court recognized the strong public interest in allowing this law to take effect while the case proceeds,” said Attorney General Jonathan Skrmetti.
The underlying constitutional claims in the case will continue to be litigated.
Complaints about these types of scams may be filed at tn.gov/consumer
About the Author: Paula Gomes is a Tennessee resident and reporter for The Tennessee Conservative. You can reach Paula at paula@tennesseeconservativenews.com.
