Senate hearing spotlights scams at cryptocurrency kiosks; law enforcement and AARP push for $1,000 limits and longer refund windows

Senators convened a lengthy hearing on SB 4 82 to consider state-level protections for cryptocurrency "kiosks," with testimony ranging from police case files to caregiver accounts of financial devastation.

Senator Tim McHugh, sponsor of SB 4 82, introduced the bill as an attempt "to put some guardrails around the use of those devices," saying the legislation proposes identity verification, waiting periods and withdrawal limits to reduce scams targeting older adults.

The bill prompted forceful testimony from law enforcement. Detective Ray Lamby of the Manchester Police Department told the committee his unit saw a fast rise in crypto-ATM cases and recommended strict limits: "A daily transaction limit ... of no more than $1,000 a day" and a "90 day window" for refunds, he said, adding that in his investigations the average victim was in their 70s and recovery of funds was essentially zero.

Hampton Chief Alec Treno and Sgt. Michael Foster of Tilton recounted cases in which seniors emptied bank accounts under scripted phone scams while instructed to deposit cash into kiosks; Foster said that when officers contacted operators immediately the only recoverable amount was the transaction fee. "Except for the transaction fee, none of this cash was ever recovered," Foster testified.

AARP New Hampshire representatives urged lower limits and broader refund windows, with Mike Padmore and volunteer Pat McDermott pressing for a $1,000 daily cap and a 90-day refund period, citing evidence from other states that such rules reduce kiosk scams and trafficking-related misuse.

Industry witnesses including Kyle Baker, representing CoinFlip, said operators support many protections in the bill — identity verification, blockchain-analytics tools to detect fraudulent wallets, and an initial hold to allow refunds — and defended the bill's draft limits (proposed at $5,000 for new customers, $15,000 for established users). Baker told the committee CoinFlip's data show most consumer contacts happen within 48 hours and the firm provides 24/7 customer service; he cautioned that substantially longer holds would impose financial and operational burdens on operators.

State regulators and enforcement officials differed on statutory placement. Brian Townsend II of the New Hampshire Department of Justice urged the committee to clarify where the statute sits (noting potential confusion if placed directly under RSA 358-a) and to define terms such as "commercially reasonable" blockchain analytics. Bank Commissioner Amelia Galdieri said the banking department could examine kiosks if statute changed but recommended full licensure rather than loose registration to give examiners enforcement authority.

Multiple caregivers and scam victims described delayed discovery of fraud — sometimes weeks or months after the transaction — and urged the committee to favor protections that reflect that reality. Several witnesses argued that education alone is insufficient for many seniors who lack regular oversight from family or caregivers.

The committee heard competing policy trade-offs: stricter limits and longer holds likely reduce victim losses but may prompt kiosk operators to withdraw from the state; looser rules may preserve consumer choice and industry jobs but risk exposing vulnerable adults to large losses. The hearing closed with no formal vote; the committee will weigh numeric caps and statutory placement in future work sessions.

Next steps: The committee has not scheduled a markup in the transcript; staff indicated members would continue to work on numeric thresholds (daily limits and hold lengths) and statutory language clarifying enforcement authority and definitions.