Kansas Law Helps Woman Recover Scammed Cryptocurrency Funds

A Wichita-area woman who lost money in a cryptocurrency scam was able to recover her funds thanks to a new consumer protection law in Kansas. The law, House Bill 2591, gives the Sedgwick County District Attorney's Office new means to help scam victims recover funds from cryptocurrency ATM operators.

The woman contacted the Wichita Police Department after being targeted by a scam involving a reported outstanding warrant. A WPD sergeant advised her to contact the cryptocurrency ATM operator directly and report the scam. The operator initially agreed to issue a refund, but only in the form of cryptocurrency, which offered little practical help to the victim.

The Sedgwick County District Attorney Consumer Protection Division took up the case under the new legislation, sending the cryptocurrency ATM operator a copy of the woman's complaint. This prompted the operator to issue a refund by check.