Arizonans crypto refund

[Oshosondy]

There was a crypto ATM law that took effect on September 26, 2025 in Arizona, cryptocurrency kiosk and ATM operators are required to issue full refunds — including all fees — to customers who report they were victims of fraud within 30 days of the transaction. To qualify, victims must report the fraudulent transaction to the Arizona Attorney General's Office or local law enforcement within that 30-day window.

Attorney General Mayes announced today that since Arizona's Cryptocurrency Kiosk License Fraud Prevention law took effect last September, the Attorney General's Office has helped 35 victims of cryptocurrency ATM scams obtain full refunds totaling $171,332. The Attorney General is renewing her call for Arizonans to act quickly — the law requires victims to report fraudulent transactions within 30 days in order to qualify for a refund.

https://www.azag.gov/press-release/attorney-general-mayes-helps-nearly-three-dozen-crypto-atm-scam-victims-recover-full

That is the news.

I did not know how they were able to refund some people that were scammed by sending coins using the crypto ATMs, but I think there are some people that might not be refunded because of how cryptocurrencies are.

I will like us to discuss about this.

[X-ray]

Somebody got scammed for their own mistake and the one taking responsibility is the company who had nothing to do with it.

Am I missing something? it's normal for the company to be forced to issue a refund if the cryptocurrency kiosk and ATM operators are the one doing the fraud but most of the time it's someone from random country doing the scam through pig butchering method and not the company.

I think there is better way than misplacing criminal responsibility from the actual scammer to someone else like this.

[Alpha Marine]

This is something that would be applauded by the people in the state, especially the victims and relatives of the victims, but that law doesn't make sense. This is like asking a bank to refund me my money after I knowingly made a transfer to a scammer. If the money was recovered from the scammer, then that is fine, but asking the bank to refund me the money is not fair.
The crypto ATM operators are only to facilitate transfers. The money was not given to them.
People need to be responsible for their actions. You can't do something like that and expect the company to pay you back for your mistakes. What about the people who get scammed through wire transfers and other means? Why aren't the banks and payment services being held responsible for it?

Only scammers demand payment in cryptocurrency. No legitimate business or government agency will ever ask you to pay or "protect your money" using bitcoin.

Look at this.
I can't even blame people who think like this. It's the scammers and thieves who have given Bitcoin such a bad name that I blame for this.
This goes on to show that the status of the person doesn't mean they would know or understand what Bitcoin is. Here is an Attorney General with all her experience, intelligence and exposure who is still be so ignorant about Bitcoin.

[IceLincoln]

This is bullshit!… I’m not living in the USA but unless the Bitcoin ATM operator is actually involved in the scam I don’t see why they should be made to refund users who went with their two legs to the ATM to make a transaction.
This is just good publicity for the Attorney General, look at the headlines “Attorney General Kris Mayes helps 35 victims recover full refunds”. Inasmuch as there are good intentions behind the law but this also looks like a political achievement for her.
If I used a traditional bank ATM to send transfers to an account by myself to a scammer I don’t expect the bank to pay for my mistake. They only facilitated what I authorised.
This law may seem fair to the victims especially as recovering crypto once sent is near impossible, but to the operators if they’re not involved in the fraudulent act is very unfair.

[Bitcoin-Forever]

All that the government may need to do is to ensure that they hold the bitcoin ATM service operators accountable for this refund, even though not all the affected victims will come forward to report their scenario, I also don't know if the attorney general will maintain the commitment to ensure that every reported case is got every last penny of their Bitcoin being refunded, but I know that issues like this are not as easy as we may thought to completely achieve the goal.

[MArsland]

Somebody got scammed for their own mistake and the one taking responsibility is the company who had nothing to do with it.

Am I missing something? it's normal for the company to be forced to issue a refund if the cryptocurrency kiosk and ATM operators are the one doing the fraud but most of the time it's someone from random country doing the scam through pig butchering method and not the company.

I think there is better way than misplacing criminal responsibility from the actual scammer to someone else like this.

The government needs to tighten the regulation of fraud prevention like this, besides the important factor is to educate the public to better understand the risks of crypto transactions and investments. Because this is due to unpreparedness and lack of understanding is often targeted by fraudsters, especially the elderly group with the lure of high profits and pension security.
The obligations of crypto ATM operators in Arizona should be reinforced with maximum transaction restrictions, emphasizing warning consumers before actually approving transactions and making sure to check the destination wallet address.

[Zlantann]

Somebody got scammed for their own mistake and the one taking responsibility is the company who had nothing to do with it.

Am I missing something? it's normal for the company to be forced to issue a refund if the cryptocurrency kiosk and ATM operators are the one doing the fraud but most of the time it's someone from random country doing the scam through pig butchering method and not the company.

I think there is better way than misplacing criminal responsibility from the actual scammer to someone else like this.

The Arizona government is simply discouraging crypto kiosk operators from operating in the state. I wouldn't set up such a service in a state with laws like Under Arizona's House Bill 2387.

Seeking refunds if the crypto ATM operators are involved or negligent makes some sense. But forcing the business owners to refund without investigating and knowing the party that made the blunder is unfair.

[EluguHcman]

There was a crypto ATM law that took effect on September 26, 2025 in Arizona, cryptocurrency kiosk and ATM operators are required to issue full refunds — including all fees — to customers who report they were victims of fraud within 30 days of the transaction. To qualify, victims must report the fraudulent transaction to the Arizona Attorney General's Office or local law enforcement within that 30-day window.

This news has spiked a deep thought in my head and can really think about the hash risks behind those running Bitcoin and crypto services as organizations.
It is so pathetic how bugs on system errors can cause organizations such losses over users in their platforms loosing their funds against hackers who somehow manages to gain illegal access to the database in the platforms to steal users funds which in such cases, the organization takes the responsibilities to refund victimized users.

The news about the Arizona crypto ATM predicament is neither not different from the news about Kucoin, Bitfinex and other exchange platforms that have also experienced similar events of their customers loosing their funds to online fraudsters.

I am only drawing an attention for we to understand that our funds security lies on using self custodial networks and prioritizing to store and processes our transactions in our Privacies (personal devices)

[_act_]

Somebody got scammed for their own mistake and the one taking responsibility is the company who had nothing to do with it.

I think the Arizona government did like that because they do not want the crypto ATM operators do be doing something underneath that they do not know about. They do not want the operators to allow users to be depositing or sending crypto on the crypto ATM machines, but if there is no such law, maybe some of the operators will not listen.

[sokani]

Not a good law if you ask me.

It's like a criminal who went to an authorized gun shop to buy a pistol, which he used to rob his victims. Instead of apprehending the criminal to face justice, the government wants the shop owner to pay the victims for the loss.

Arizona's government should have simply banned Bitcoin ATM operations in the state instead of coming up with such a law. The people who are going to suffer this harsh law are the Bitcoin ATM operators.

[Faisal2202]

I did not know how they were able to refund some people that were scammed by sending coins using the crypto ATMs, but I think there are some people that might not be refunded because of how cryptocurrencies are.

I will like us to discuss about this.

It is obvious that the scammers are not paying the funds back, or the transactions made on-chain are not reversing. Only the kiosk is responsible for all this. They must be paying the funds from their own revenues, etc., because transactions made on-chain can't be reversed, as we know that.

Attorney General Mayes is doing an amazing job because if it is really true, she has helped in the recovery of $171,332, then that's great. It is not so easy to refund people that kind of money that quickly.

[Z-tight]

It would be foolish to continue operating a cryptocurrency kiosk in Arizona as a result of this rubbish fraud prevention law. I would like to also see the authorities enforce refunds for fraud that happens through fiat. This is simply an anti-crypto law and those responsible for implemeting this can go fuck themselves.

This would only make gullible people more stupid than they already are. I mean, if you call them and attempt to defraud them with the most obvious method, they wouldn't mind trying it out, since the company that runs the kiosk is going to issue a full refund, madness!

[OgNasty]

I hadn't heard about this but it is an interesting case.  I don't know the details so I can't have an opinion as strong as some of the others, but I am fascinated how the fraud occurred just from using a crypto ATM.  I am glad I've never used one after hearing about this story and maybe even that I never operated one.  Still, this sounds like a bad situation that negatively effected some people in my home state, so I hope they get their money back.

[Ojima-ojo]

I did not know how they were able to refund some people that were scammed by sending coins using the crypto ATMs, but I think there are some people that might not be refunded because of how cryptocurrencies are.

I will like us to discuss about this.

The refund is based on the insurance cover from the ATM company and not from the receiver of the bitcoin, this will strengthen bitcoin ATM operations to make sure that every customer is actually truly verified and traceable because if the transaction is reported they will be the one to make refund to the victims since bitcoin transactions remain irreversible when made.


This law and refund is part of a move to create some insurance for customers using physical bitcoin ATM to make transactions within the Arizona state.

[Danish Ali]

I did not know how they were able to refund some people that were scammed by sending coins using the crypto ATMs, but I think there are some people that might not be refunded because of how cryptocurrencies are.

Refund will not be from blockchain, it will be from the pockets of ATM operators. Being forced to pay victim from operators own funds, NOT reversing any transactions, is law. So it accomplishes sense, for ATM operator is licensed firm and it is his/her machine. But at least in the case of blockchain transactions, this is not the case, as transactions are irreversible.

But it is really about 30 days window. Mostly people who are the victim of cryptocurrency scam only discover this fact when they try to cash out "how they made a killing" in the cryptocurrency market many months later. With this law, so many people still will not be eligible, Arizona's law is good, but 30 days does not necessarily give them enough time, given these scams.

[Z-tight]

but I am fascinated how the fraud occurred just from using a crypto ATM.

It is easy to understand how crypto atm scam works. The scammers call the gullible people, impersonating a government official, banker, or any position of authority. Then they create a false sense of urgency on the person, either claiming their bank was hacked, or their fiat is at risk in their bank account. They are then led on to go and withdraw fiat from their bank accounts and talk to nobody about it.

As soon as they have withdrawn the cash, they are directed to head to a crypto atm, feed their fiat into the machine and buy BTC. The scammer provides the gullible individual with their BTC address through a qr code, so, as soon as they have bought the BTC, they scan the qr code and send the coins to the scammer's address and that is how they are scammed.

[Ojima-ojo]

but I am fascinated how the fraud occurred just from using a crypto ATM.

It is easy to understand how crypto atm scam works. The scammers call the gullible people, impersonating a government official, banker, or any position of authority. Then they create a false sense of urgency on the person, either claiming their bank was hacked, or their fiat is at risk in their bank account. They are then led on to go and withdraw fiat from their bank accounts and talk to nobody about it.

As soon as they have withdrawn the cash, they are directed to head to a crypto atm, feed their fiat into the machine and buy BTC. The scammer provides the gullible individual with their BTC address through a qr code, so, as soon as they have bought the BTC, they scan the qr code and send the coins to the scammer's address and that is how they are scammed.

Those scammers on the outside make use of Bitcoin ATM just to hide their identity, but their victims will be the only one that have direct link with them, but the rule of Bitcoin ATM operators here is what is confusing because this scam is just every other scams that happens, it's the victim responsibility to remain skeptical and vigilant to detect when someone is about to scam them.


Unless if the law is also going to mandate those Bitcoin ATM to start staking deposit and holding for that specific date if no complaints from sender before sending the Bitcoin t the end receiver, KYC is going to solve this issue.

[Cryptomultiplier]

but I am fascinated how the fraud occurred just from using a crypto ATM.

It is easy to understand how crypto atm scam works. The scammers call the gullible people, impersonating a government official, banker, or any position of authority. Then they create a false sense of urgency on the person, either claiming their bank was hacked, or their fiat is at risk in their bank account. They are then led on to go and withdraw fiat from their bank accounts and talk to nobody about it.

As soon as they have withdrawn the cash, they are directed to head to a crypto atm, feed their fiat into the machine and buy BTC. The scammer provides the gullible individual with their BTC address through a qr code, so, as soon as they have bought the BTC, they scan the qr code and send the coins to the scammer's address and that is how they are scammed.

The scammers themselves must have known the difference between a CEX and DEX system since after they scammed their victims, the government fails to use all the technology at their disposal to fish them out via kyc requirements they filled up on having a Bitcoin receiving address or other means of identification on the Blockchain.

This serves as a lesson in every way to these ATM operating companies to implement stricter AML/KYC checks, enforce lower transactions limit and learn to use some tools that can block transfers to a blacklisted scammers address.
Now they get to pay back the victims from their own balance sheet because the regulations in the state they registered their business under, forces them to do so.

It's a hard pill to swallow for these companies in terms of incurred cost, but a bigger lesson to learn to both the customers and business owners to be vigilant and cautious mostly when it comes to transactions that are large and mostly embedded with the need of urgency.

[Texac]

I did not know how they were able to refund some people that were scammed by sending coins using the crypto ATMs, but I think there are some people that might not be refunded because of how cryptocurrencies are.

Hmm, at first I also thought, those transactions are irreversible, so how did ATM operator refund money! Actually Arizona law does not reverse blockchain transaction

From what I understand, they are imposing legal obligation of refund on operator. That is returning BTC from scammer's wallet and providing compensation to victim on behalf of ATM operator, these are not same thing. According to Arizona law if any eligible new customer report ATM operator and Attorney General within 30 day and the authorities report that they were fraudulently induced then operator must provide full refund including transaction amount and fee.

[macson]

I think this rule is a bit unreasonable, as these individuals knowingly authorized the transactions, and yet the crypto ATM provider is obligated to compensate for the scam. As far as I know, banks won't provide compensation for this type of scam, indicating a regulatory imbalance between crypto ATM providers and banks in this regard.

If this is the case, I think that crypto ATM providers might think twice before expanding their business in Arizona --- and perhaps that is the regulator's goal to discourage crypto ATM providers.