New Consumer Protection Law Helps Scam Victim Recover Money Lost to Cryptocurrency ATM

FOR IMMEDIATE RELEASE

September 9, 2026

WICHITA, KANSAS — The Sedgwick County District Attorney's Office is crediting a new state consumer protection law with helping a local woman recover money she lost to a cryptocurrency scam, in a case office officials say illustrates both the persistence of scammers and the value of quick reporting.

The victim, a resident of Sedgwick County contacted the Wichita Police Department after being taken advantage of via an outstanding warrant scam. In this type of scheme, a caller falsely claims to be a law enforcement officer or court official and tells the victim that a warrant has been issued for their arrest. The caller then instructs the victim to avoid the warrant by making an immediate payment, often through a cryptocurrency ATM.

Sgt. Marr advised the victim to contact the cryptocurrency ATM operator directly, report the scam, and request a refund.

The operator initially agreed to issue a refund, but only in the form of cryptocurrency, an option that offered little practical help to a victim who had no familiarity with digital currency or how to access it. Facing that obstacle, the victim considered giving up on recovering her money.

Sgt. Marr encouraged her to continue pursuing the refund, and the case was taken up by the Sedgwick County District Attorney Consumer Protection Division under HB 2591, a recently enacted law that gives the office new means to help scam victims recover funds from cryptocurrency ATM operators. Among its most significant provisions, the law establishes a holding period before cryptocurrency purchased at a cryptocurrency ATM can be released, sets transaction limits, and requires operators to provide refunds to victims of fraud under certain conditions.

After the Consumer Protection Division sent the cryptocurrency ATM operator a copy of the victim's complaint, the operator agreed to issue the refund by check. Without the protections created by HB 2591, the office says, the victim likely would not have recovered any of her money.

Protecting Yourself from Cryptocurrency ATM Scams

The Sedgwick County District Attorney's Office and the Wichita Police Department are using this case to remind the public that legitimate government agencies, law enforcement, and courts will never instruct anyone to pay a fine, fee, bail, or warrant through a cryptocurrency ATM. If someone contacts you claiming to represent law enforcement, a court, a utility company, or a government agency and directs you to withdraw or deposit money at a cryptocurrency ATM, that is a scam, and you should end the contact immediately rather than follow their instructions.

Anyone who believes they are being pressured into a cryptocurrency ATM transaction is encouraged to stop the transaction, hang up the phone, and contact local law enforcement or the Consumer Protection Division before sending any money. Scammers frequently create a false sense of urgency, warning that a delay of even a few minutes will result in arrest, so taking time to pause and verify the situation independently, by calling the police department or courthouse directly using a publicly listed number, is one of the most effective ways to avoid becoming a victim.

The office also encourages residents to talk with older family members and neighbors about these scams, since elderly residents are frequently targeted specifically because scammers assume they are less familiar with cryptocurrency and more likely to comply out of fear. Family members who notice a loved one being secretive about a phone call, withdrawing unusual amounts of cash, or asking questions about cryptocurrency ATMs should ask questions and encourage them to contact law enforcement before taking any action.

Residents who believe they have been targeted by a scam, including one involving a cryptocurrency ATM, are encouraged to contact the Sedgwick County District Attorney's Consumer Protection Division or file a report with their local police department.