According to a recent report by TRM Labs, crypto ATMs are more vulnerable to fraud and money laundering due to weak KYC and AML protocols, having handled at least $160 million in illicit funds since 2019 to date. In 2023 alone, the proportion of illegal transactions at crypto ATMs reached 1.2% of their total transaction volume, while the proportion of illegal transactions in the entire crypto ecosystem was only 0.63%. The report also revealed that more than $30 million of illicit funds in 2023 were linked to known scam addresses, highlighting the role of crypto ATMs in facilitating fraud schemes. The discovery comes amid heightened scrutiny of the cash-to-cryptocurrency space by global regulators. In Germany, authorities recently seized 13 unlicensed Bitcoin ATMs and seized nearly 250,000 euros in cash, highlighting the authorities' ongoing efforts to curb illegal activity linked to these machines.