Crypto kiosk operators have refunded more than $750,000 to Illinois scam victims, state says

Operators of cryptocurrency kiosks have returned more than $750,000 to Illinois residents who reported being scammed or defrauded through the machines, the Illinois Department of Financial and Professional Regulation said.¹ The refunds were made under the Digital Asset Kiosks Act, which took effect last year.^{1, 2}

Since the law was signed in August 2025, kiosk operators have received 453 refund requests from Illinois consumers and granted refunds totaling $750,206.61, an average of $1,656 each, according to the department.¹ Gov. JB Pritzker signed the act on Aug. 18, 2025.³

“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 Secretary Mario Treto Jr. said in a statement.¹

What the law requires

The law requires operators to report where their kiosks are and adds consumer protections aimed at fraud and scams, WAND reported.^{2, 3} It caps transaction fees at the kiosks at 18% and limits new customers to $2,500 in transactions a day, according to WAND.²

Among its central provisions is a requirement that operators give full refunds to new customers who are victims of scams carried out through the kiosks, subject to the law’s conditions, the department said in an earlier release.³ To qualify, a customer must report the fraud to the operator within 30 days of the transaction and give the operator a police report within 60 days, WAND reported.²

“The growth of digital asset kiosks has given consumers easy access to digital assets, but that access must be accompanied by appropriate safeguards,” said Jake Hamilton, the department’s regulatory innovation officer.¹

The debate over the law

State Sen. Laura Ellman, a Naperville Democrat, said the refunds showed the law working.² “Illinois has put stronger consumer protections in place, and we’re seeing results,” she said, according to WAND.² “People are getting money back, and operators are being held accountable.”²

Republicans opposed the law, arguing that Illinois should follow regulations other states had adopted, WAND reported.² WAND also quoted state Sen. Steve McClure, a Springfield Republican, on the position of the crypto exchange Coinbase.² “Coinbase is, as far as I know, still in opposition to this bill,” McClure said, according to WAND.² Democrats said Coinbase is a good actor in the industry but was always going to oppose state-level regulation, the station reported.²

A separate enforcement action

Earlier this month, the department and financial regulators in other states reached a $2.5 million settlement with Coinme Inc., a Seattle-based cryptocurrency money transmitter and kiosk operator, over violations of anti-money laundering laws, including the Bank Secrecy Act.³ Under the settlement, Coinme agreed to end its virtual currency kiosk operations by Jan. 1, 2027, or face an additional $4 million penalty, according to the department.³ The company also agreed to hire an independent consultant to review its anti-money laundering program and report to the states within six months.³

What happens next

People who believe they were scammed through a crypto kiosk can request a refund from the operator within the law’s deadlines, and the department encourages consumers to report crypto scams by filing a complaint, WAND reported.² The department said it will keep working with consumers and regulated businesses to ensure compliance with the state’s digital asset law and to protect consumers from scams.¹