A sheriff in a Texas county ignited a discussion within the cryptocurrency community after using a power tool to dismantle a Bitcoin ATM. This action followed reports that a local family fell victim to a scam, losing $25,000.
News outlets reported that a family residing in Jasper County, located northwest of Houston, was deceived by a con artist posing as a government official. The scammer allegedly instructed the family to deposit funds into a Bitcoin (BTC) ATM.
Sheriff Chuck Havard of Jasper County obtained a warrant and proceeded to cut open the ATM, identified as being operated by Bitcoin Depot, to recover approximately $32,000. This sum included the $25,000 that the family had transferred to the fraudsters.
Sheriff Havard stated that the scammer told the victims they had outstanding fines of $25,000 and directed them to transfer the money to a specific Bitcoin address. The family then used the Bitcoin ATM to complete the transaction.
Bitcoin Depot has been contacted for their response to this event.
Crypto Community Debates Police Actions
“It seems the authorities might have damaged the property of an innocent third party and taken their money,” commented Reddit user JohnDLG on Reddit in reaction to the news.
Another Reddit user, Jad8484, wrote, “Unless the ATM operator was involved in the fraud, this doesn’t make sense.”
They added, “It’s comparable to seizing all the funds from a pharmacy register after someone purchased prepaid gift cards to send to scammers.”
Havard defended his decision, stating, “When criminals and fraudsters attempt to exploit the people of Jasper County, we will act swiftly and use every available resource to protect our residents and their assets at all costs.”
Sheriff Emphasizes Complexity of Cases
Sheriff Havard noted that crypto-related scam cases “can be highly complex and difficult to resolve.”
He confirmed that the scammer’s location remains unknown.
This incident occurs amid increased scrutiny of crypto ATMs in the United States and internationally.
Related: US Justice Department Moves to Seize $225M in Crypto Linked to Pig Butchering Scams
On June 18, Spokane, Washington, the state’s second-largest city, prohibited crypto ATMs due to a rise in scam incidents affecting local residents.
In April, the FBI reported nearly 11,000 complaints and over $246 million in losses linked to cryptocurrency ATM fraud in 2024, a 31% increase compared to 2023.
On June 3, the Australian Transaction Reports and Analysis Centre recently imposed a 5,000 Australian dollar (approximately $3,250 USD) limit on cash deposits and withdrawals at crypto ATMs.
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