* Press release…

The Illinois Department of Financial and Professional Regulation (IDFPR) announced today that digital asset kiosk operators have refunded more than $750,000 to Illinois consumers since the Digital Asset Kiosks Act (DAKA) took effect last year, providing financial relief to consumers who reported being victims of scams or fraud involving digital asset kiosks.

“When we put meaningful protections in place, we expect those protections to make a difference in the lives of Illinoisans,” said IDFPR Secretary Mario Treto, Jr. “More than $750,000 returned to consumers is a clear indication that the Digital Asset Kiosks Act is doing exactly what it was intended to do. IDFPR will continue its efforts to demonstrate that innovation and consumer protection can, and should, go hand in hand.”

Since the law was signed in August 2025, kiosk operators have received 453 refund requests from Illinois consumers and have granted refunds to Illinois consumers totaling $750,206.61, with an average of $1,656 per refund. […]

DAKA established new requirements for operators of digital asset kiosks, including reporting of kiosk locations and consumer protections designed to address fraud and scams. Among the law’s key provisions is a requirement that operators provide full refunds to new customers who are victims of scams conducted through digital asset kiosks, subject to the requirements of the law.

While some digital asset kiosks allow users to sell their cryptocurrency in exchange for cash, most customers use kiosks to purchase cryptocurrency with cash and send it to a digital wallet. Scammers exploit the ease of these transactions to direct victims to send funds to wallets controlled by scammers, which can be located anywhere in the world. Victims do not need to already own cryptocurrency to be targeted.

Although kiosk operators have implemented safeguards and disclosures intended to prevent scams, scammers often coach victims on how to bypass those protections and send cryptocurrency to wallets they do not control. These tactics underscore the importance of consumer awareness and the refund protections established under DAKA. […]

The law also established a transaction fee cap of 18 percent at digital asset kiosks and limits daily transaction amounts for new customers to $2,500. These provisions are intended to provide additional protection for consumers who may be unfamiliar with digital asset kiosks and the risks associated with digital asset transactions. […]

Consumers who believe they may have been the victim of a scam involving a digital asset kiosk can request a refund by reporting fraud to the operator within 30 days of the transaction and providing a police report to the operator within 60 days of the transaction. IDFPR also encourages consumers to report the matter to the Department by filing a complaint on the IDFPR website.

* Three states have banned crypto kiosks. Minnesota Public Radio…

A new state law taking effect Aug. 1 aims to put a stop to scams that have caused some Minnesotans to lose, in some cases, their entire life savings. […]

State lawmakers passed a ban on crypto kiosks this past legislative session in light of these schemes and it was signed into law by Gov. Tim Walz in May. Under the new law, crypto kiosks must be offline by Aug. 1 and physically removed before Dec. 31.

Cathy McLeer, state director of AARP Minnesota, said her organization worked to advocate for the legislation because older adults are disproportionately affected.

“The reality is anyone at any age can be targeted by these scams, but older adults often lose more in these scams because they have more to lose.”

* The Question: Should Illinois ban crypto kiosks or leave its current consumer protections in place? Make sure to explain your answer.

* More…

* NBC Chicago | A TikTok romance, a fake doctor and $200,000 gone: Cyrus used a newer tactic as a scammer, sending Mary to a crypto ATM in the vape shop, where staff watched her stuff thousands of dollars into the machine. Worker Ryan Williamson says it happens several times a month. “I have tried in the past to warn people because usually as the people walk in here [with] someone on the phone with them I ask them ‘hey do you know that person? You know what’s going on?’” said Williamson. This year, Minnesota banned crypto ATMs, and lawmakers in other states are considering similar action. Last year Illinois enacted some of the nation’s toughest crypto ATM laws, limiting transactions, capping fees and creating refund protections for scam victims.

* Hawaii News Now | New Hawaii law banning cryptocurrency ATM deposits to take effect Oct. 1: Consumers will no longer be able to deposit cash into the kiosks to buy cryptocurrency. Consumers with existing accounts can still convert their crypto into cash and make withdrawals. AARP and other consumer advocates point to FBI data showing $3.85 million in losses through fraud involving cryptocurrency kiosks in 2025 — nearly four times the amount reported the previous year.

* Press release | IDFPR Joins $2.5 Million Settlement With Crypto Kiosk Operator: – The Illinois Department of Financial and Professional Regulation and thirty-three other state financial regulatory agencies have reached a $2.5 million settlement with Coinme Inc. (NMLS ID 1185542), a Seattle-based cryptocurrency money transmitter and kiosk operator, for violations of Bank Secrecy Act (BSA) and anti-money laundering (AML) laws that safeguard the financial system from illicit use. Under the terms of the settlement, Coinme has agreed to terminate its virtual currency kiosk operations by Jan. 1, 2027, or face an additional $4 million penalty. The settlement amount will be allocated among participating states based on transaction volume. […] In addition, Coinme has agreed to hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program and submit a report to the states within six months. Coinme will have 12 months to correct any deficiencies found in the review after the report is filed.

* Forbes | FTC Warning: Crypto ATM Scams Up 1,000%—How To Protect Yourself: A report from the Federal Trade Commission (FTC) indicates a 1,000 % increase in money lost to scammers through cryptocurrency ATMs between 2020 and 2023. Additionally, consumers reported losses of $388 million in 2025 a 58% increase in losses over 2024. […] While cryptocurrency ATMs were not created by criminals, criminals were quick to take advantage of these machines to provide a quick and efficient way to receive funds from victims of their scams. In particular, the anonymity of cryptocurrencies and the ease with which the funds could be transferred out of the country through a cryptocurrency ATM made cryptocurrency ATMs a favorite method for laundering the proceeds of scams. In 2024 the FTC published a report in which it referred to cryptocurrency ATMs as “a payment portal for scammers.”