Arizona Attorney General Kris Mayes said the state helped 35 crypto ATM scam victims recover $171,332 in full refunds under a law effective Sept. 26, 2025. The recoveries average about $4,895 per victim. The state has not disclosed individual payments, rejected claims, or unresolved applications.
Arizona enacted HB 2387 as Chapter 171 in 2025 and kept cryptocurrency kiosks legal under tighter consumer protections. The law caps new customers at $2,000 daily across one operator’s kiosks. Existing customers can transact up to $10,500 each day.
Operators must provide 24-hour customer service, issue receipts, and use blockchain analytics and tracing tools. Those systems aim to stop transfers to wallets already linked to fraud. Arizona defines a new customer as someone with an operator for fewer than 10 days.
A qualifying new customer can receive a full refund, including fees, after a fraudulently induced transaction. The customer must contact the operator and law enforcement or the Attorney General’s Office within 30 days. The customer must also provide a report finding that fraud induced the transaction.
Mayes urged victims to report suspected fraud immediately because missing the deadline can end refund eligibility. Required warning screens do not remove the operator’s refund duty when a customer meets the law’s conditions.
FBI data released in May recorded 460 Arizona complaints involving crypto kiosks during 2025, with $14.53 million in adjusted losses. Nationwide, the FBI received 13,460 complaints and almost $389 million in reported losses. Complaints rose 23%, while reported losses increased 58% from 2024.
The FBI cautioned that those figures do not represent crypto ATM transactions alone because some complaints also involved other payment methods. Even so, people over 50 filed more than half of nationwide kiosk complaints. That group reported more than $302 million in losses.
Colorado adopted a similar refund model on January 1. Its law uses the same $2,000 limit for new customers and $10,500 limit for existing customers. Colorado gives certain first-transaction victims up to 60 days to report fraud when funds reach a wallet or exchange outside the US.
Also Read: Australia Cracks Down on Crypto ATMs Amid Rising Scams
Tennessee and Indiana chose bans instead. Tennessee’s Public Chapter 766 made knowingly installing, operating, or allowing a virtual currency kiosk a Class A misdemeanor from July 1, 2026. A federal court declined to pause enforcement while the lawsuit continues.
Indiana also enacted HB 1116, which prohibits virtual currency kiosks after the governor signed the measure in March. The contrasting approaches raise one pivotal question: Will refund rules reduce consumer losses more effectively than outright bans?
Arizona’s $171,332 recovery total cannot yet answer that question. The state has not published total refund applications or their value. The FBI’s Arizona loss figure covers all of 2025, while Arizona’s refund law began in late September and applies only to qualifying new customers.
Arizona’s crypto ATM law has returned $171,332 to 35 qualifying fraud victims while imposing transaction limits and refund requirements on operators. Meanwhile, Colorado uses a similar model, while Tennessee and Indiana chose bans. Mayes advises victims to report suspected kiosk fraud quickly to preserve refund eligibility.