Texas Sheriff Takes Action Against Crypto ATM Amid Scam Allegations

According to Cointelegraph, a Texas sheriff has taken decisive action against a local cryptocurrency ATM following reports of a family being scammed out of $25,000. The incident has sparked debate among cryptocurrency users regarding the appropriateness of the sheriff's actions. Local reports from Tuesday indicate that a scammer impersonated a government employee to deceive a family in Jasper County, northwest of Houston, into depositing funds at a Bitcoin ATM. Jasper County Sheriff Chuck Havard obtained a search warrant and proceeded to cut open the ATM, which was operated by Bitcoin Depot, in an effort to recover approximately $32,000, including the $25,000 lost by the family. Sheriff Havard explained that the scam involved a caller instructing the family to pay $25,000 in fines by depositing the money into a Bitcoin address, leading them to use the Bitcoin ATM for the transaction. Bitcoin Depot has been contacted for comment on the incident. The sheriff's actions have drawn criticism from some crypto users, with Reddit user JohnDLG questioning whether government employees destroyed property and took money from an innocent third party. Another Reddit user, Jad8484, expressed confusion over the sheriff's approach, likening it to confiscating money from a store register after someone purchased gift cards for scammers. Despite the criticism, Havard defended his actions, stating that his department would use all available resources to protect citizens from scammers. Sheriff Havard acknowledged the complexity of cases involving cryptocurrency scams, noting that they can be challenging to solve. He also mentioned that his department has not yet located the scammer responsible for the incident. This event occurs amid increasing scrutiny of cryptocurrency ATMs both in the United States and internationally. In June, Spokane, Washington, banned crypto ATMs due to a rise in scam activity targeting residents. The FBI reported nearly 11,000 complaints and over $246 million in losses related to crypto ATM scams in 2024, marking a 31% increase from the previous year. Additionally, the Australian Transaction Reports and Analysis Centre recently imposed a limit of 5,000 Australian dollars ($3,250) on cash deposits and withdrawals at crypto ATMs.