Sheriff Cuts Open Bitcoin ATM Recovering $31,900 in Cash

Coin WorldSunday, Jun 22, 2025 1:05 pm ET
1min read

The Sheriff of

County, Texas, made an unprecedented move by using a circular saw to cut open a Bitcoin ATM to investigate a crypto fraud case. This action highlights a growing trend of scammers using cryptocurrency to defraud vulnerable individuals, particularly senior citizens. The Sheriff’s Office reported that a local resident lost $25,000 in a scam, where the victim was deceived into depositing the money into a Bitcoin ATM, believing it to be a secure transaction. The investigation revealed that this was part of a broader fraud scheme.

After obtaining the necessary legal approval, investigators took decisive action. They broke into the

ATM with a circular saw and recovered $31,900 in cash from the machine. Scammers have increasingly turned to Bitcoin ATMs as a means to avoid the protections offered by traditional banking systems. These machines allow individuals to quickly convert cash into cryptocurrency without the need for identification or scrutiny, making them an attractive tool for criminals.

The rise of crypto ATMs has facilitated the spread of fraud. In 2024, the FBI reported that senior Americans lost $107 million through scams involving crypto ATMs. This has led many governments worldwide to shut down crypto ATMs and implement stricter regulations to curb such activities.

Bitcoin Depot, the company behind the ATM, has stated that it is not responsible for the fraud. The company acts solely as a money service business that converts cash into cryptocurrency. In a statement, Bitcoin Depot emphasized that it adheres to strict regulations to prevent money laundering and fraud. The company also expressed its support for law enforcement and its willingness to assist in such cases. However, Bitcoin Depot clarified that the stolen money is rarely found in the machine, as it is usually transferred to another crypto wallet or exchanged.

Despite the recovery of the cash from the ATM, the victim will not immediately receive the funds. The court must first confirm that the money was stolen before it can be returned to the victim. This process can be lengthy and does not always result in the victim's favor. There is a small chance that the scammer made a mistake, such as using a crypto exchange that cooperates with authorities. In such cases, investigators can track and recover the stolen cryptocurrency, as seen in the Colonial Pipeline ransomware case, where the U.S. Justice Department recovered $2.3 million in Bitcoin.