Arizona has secured $171,332 in full refunds for 35 victims of cryptocurrency ATM scams under a state law that took effect on September 26, 2025. Attorney General Kris Mayes announced the recoveries on Wednesday, noting that her office assisted the victims in obtaining reimbursements from kiosk operators.

The average recovery amounts to roughly $4,895 per person. State officials have not released individual refund figures or details on how many claims were denied or remain pending.

How the Refund Mechanism Works

The Cryptocurrency Kiosk License Fraud Prevention law, enacted as HB 2387, permits crypto ATMs to continue operating while imposing strict consumer protections. It defines a new customer as someone who has used an operator’s machines for fewer than 10 days. Those customers face a $2,000 daily transaction limit across an operator’s network. Existing customers are capped at $10,500 per day.

Operators must provide 24-hour customer service, issue transaction receipts that include destination wallet addresses, display warning screens, and employ blockchain analytics tools designed to block transfers to known fraud-related wallets. Most critically, the law requires a full refund—including fees—when a new customer was fraudulently induced into a transaction, provided the victim contacts both the operator and either law enforcement or the Attorney General’s Office within 30 days and supplies a report confirming the fraud.

Mayes stressed that missing the 30-day deadline can eliminate eligibility for reimbursement. An AG spokesperson described common tactics in which scammers pose as government agents or law enforcement, claim the victim is under investigation, or insist that moving cash into cryptocurrency will protect the funds. Some victims have transferred their entire life savings.

National Scale of Losses

Federal data show the problem extends far beyond Arizona. In 2025 the FBI recorded 13,460 complaints involving crypto kiosks nationwide and nearly $389 million in reported losses—increases of 23 percent and 58 percent from the prior year. Arizona residents filed 460 of those complaints and reported $14.53 million in losses. More than half of the national complaints came from people over age 50, who accounted for more than $302 million in losses.

Authorities note that some complaints may involve additional payment methods beyond pure ATM transactions, yet the figures still illustrate the scale of the risk.

Diverging State Approaches and Market Contraction

Arizona’s refund-focused model stands in contrast to outright bans adopted elsewhere. Tennessee made it a misdemeanor to install or operate virtual-currency kiosks beginning July 1, 2026. Indiana has also prohibited the machines. Hawaii will bar kiosks from accepting U.S. dollars in exchange for digital assets starting October 1. Colorado has adopted similar daily limits and a refund provision, though its rules differ in timing and eligibility details.

Since 2023, roughly 30 states have enacted laws governing crypto kiosks, with 13 measures adopted in 2026. Internationally, Australia’s AUSTRAC recently suspended an operator and shut down 96 machines, while regulators in Germany and the United Kingdom have conducted earlier enforcement actions against unlicensed or high-risk machines.

Installation numbers have declined sharply. Global crypto ATM counts fell from a peak of 40,072 in December 2022 to 27,524 as of mid-August 2026, a drop of more than 31 percent. In the United States the decline has been steeper, from a high of 35,037 machines in August 2022 to 19,754 units.

Industry forecasts still project strong long-term market growth, yet the contraction in physical machines signals that compliance costs and regulatory pressure are already reshaping access points for cash-to-crypto transactions.

Mayes continues to urge Arizona residents who believe they have been defrauded to report the incident promptly to local law enforcement or her office so they can pursue the refunds available under the state statute.