In response to a wave of cryptocurrency kiosk scams that have left Wisconsin families financially devastated, the state legislature approved Act 226 this month. The law, co‑authored by Republican Sen. Jesse James of Thorp and Rep. Patrick Snyder of Weston, caps daily kiosk transactions at $1,000, mandates receipt issuance, requires consumer identification, and creates a refund pathway for victims.
Local victims illustrate the problem
Robert Semanko, a 31‑year‑old father of three from central Wisconsin, was duped in October when a caller posing as a Chippewa County sheriff’s officer claimed he owed $2,000 in fines. Over three hours the scammer convinced Semanko to load $7,000 into a cryptocurrency kiosk. In another case, 63‑year‑old Beth Sewall of the Fox Valley lost $20,000 after a fraudster pretended to be a credit‑union employee and directed her to a Coinhub kiosk at a Shell station in Appleton.
Statewide, losses have been staggering. A Dodge County resident lost $200,000 in July 2024, an Ozaukee County victim forfeited $98,000 in October 2024, and a Milwaukee County consumer reported a $114,000 loss in September 2025. A‑ARP Wisconsin’s state director, Raj Shukla, notes that 86 % of crypto kiosk losses involve adults over age 60, though younger families are also targeted.
How the law works
Act 226 limits each consumer to $1,000 in daily purchases, a figure that lawmakers say balances consumer protection with the legitimate operation of the industry. The bill also requires kiosks to print a receipt for every transaction and to verify the buyer’s identity before completing a purchase. Victims can now request refunds directly from kiosk operators, a step that was previously unavailable.
“People need to be educated on this more,” Sen. James said. “I think with the new law, it’s gonna definitely help because people will be more well‑versed on how this is coming about.” The Department of Financial Institutions’ assistant chief legal counsel, Michael Gavigan, confirmed that reports of illicit activity have dropped noticeably since the law took effect.
Law enforcement sees early results
Detective Scott Simons of the Greenfield Police Department, a nationally recognized cryptocurrency investigator, reported a “drastic drop” in scam attempts. “When it’s $1,000 now, compared to maybe they would have lost $20,000 a year ago, that’s a huge difference,” Simons explained. He added that the ID requirement prevents fraudsters from using a single account across multiple victims.
While the law does not ban cryptocurrency kiosks outright—unlike Indiana, Tennessee, and Minnesota—it represents a significant regulatory step. Early drafts of the bill called for a $500 daily limit, but industry lobbyists successfully pushed for a $1,000 cap. Assembly Speaker Robin Vos, who opposed a total ban, said the compromise protects the industry while safeguarding consumers.
Industry response
Coinflip, a major kiosk operator, issued a statement emphasizing its “proactive steps to mitigate fraudulent activity,” including 24/7 support and multi‑factor verification. Bitcoin Depot echoed the sentiment, noting that fraud “hurts our customers, damages our reputation, and undermines the integrity of the digital asset ecosystem.” Both companies pledged to cooperate with the new refund process.
Despite these assurances, critics argue that the law could still leave loopholes for sophisticated scammers. Nonetheless, the consensus among Wisconsin officials is that Act 226 marks a decisive move toward protecting seniors and families from predatory schemes.
What’s next?
State officials will monitor the law’s impact over the coming months, with the Department of Financial Institutions tracking refund requests and scam reports. If the trend of reduced losses continues, Wisconsin may serve as a model for other states wrestling with the balance between innovation and consumer safety.
Original reporting: Wisconsin Watch — read the source article.
