Hawaii Law Bars Cash Deposits at Crypto ATMs From October

The same report cites investigations by the attorneys general of Washington, DC and Iowa which found more than 93% of transactions at the kiosks they examined were scam transactions. Since consumers have other ways into digital assets, the committee concluded, banning purchases outright was appropriate.

The FBI's Internet Crime Complaint Center logged 92 kiosk-related complaints from Hawaii residents in 2025 and $3.85 million in adjusted losses, close to four times the previous year's figure, and 826 crypto complaints from the state overall, worth about $80 million. Hawaii banking commissioner Dwight Young told Hawaii News Now the machines appeal to criminals because they are anonymous and hard to trace, with approaches typically beginning with an unsolicited call, text or email claiming a bank account has been compromised or a jury summons missed.

Staff working near the kiosks told the state's consumer affairs department that most people using them are kupuna, or elders, who appear panicked or frightened.

Around 57 crypto ATMs operate across four of Hawaii's islands, according to CoinATMRadar. Other states are moving in the same direction, with Texas lawmakers weighing a ban after kiosk scams cost residents $57 million, while Delaware has advanced a bill of its own.