Sheriffs Retrieve $31,900 From Bitcoin ATM After Family Fraud

Texas sheriffs recently employed power tools to retrieve $32,000 from a Bitcoin ATM, following a report from a Jasper County family who claimed they were defrauded out of $25,000. The incident involved the use of a circular saw to break into a Bitcoin Depot kiosk, as evidenced by images shared by the Jasper County Sheriff’s Office. These images depicted stacks of hundred-dollar bills, evidence bags, and a gas station located on a rural road.

Jasper County Sheriff Chuck Havard acknowledged that law enforcement had previously accessed Bitcoin ATMs but declined to confirm if this was the first instance of using force to retrieve funds. Havard emphasized the importance of verifying the legitimacy of any entity claiming to be a law enforcement agency or government official before sharing personal information.

Crypto ATMs facilitate the conversion of cash into Bitcoin, and in 2024, individuals over 60 years old reported $107 million in Bitcoin ATM-related losses. Criminals often impersonate tech support workers or government employees to carry out these scams. The Jasper County Sheriff’s Office stated that they would utilize all available resources to protect citizens and their property from such fraudulent activities.

Bitcoin Depot, the company that operates the Bitcoin ATM, has implemented various compliance measures, including robust transaction monitoring systems, know-your-customer, and anti-money-laundering programs. The firm has facilitated $3 billion worth of transactions across 8,400 kiosks in North America. A spokesperson for Bitcoin Depot mentioned that the company collaborates with investigators to clarify when recovery of funds may be possible, typically involving the receiving wallet provider or exchange rather than the kiosk itself.

Local authorities obtained a search warrant before retrieving the funds, which totaled $31,900. While the victim’s cash has been recovered, law enforcement is still in the process of locating the scammers online. The incident highlights the ongoing challenges faced by law enforcement in dealing with cryptocurrency-related fraud and the need for continued vigilance and education among the public.