A county sheriff in Texas used an electric cutting tool on a local cryptocurrency ATM after a family was reportedly scammed out of $25,000, sparking intense debate among cryptocurrency users about the legitimacy of his actions.
According to local media reports on June 17 (Tuesday), a scammer impersonated a government official, tricking a family in Jasper County, northwest of Houston, into depositing funds at a local Bitcoin (BTC) ATM.
Jasper County Sheriff Chuck Havard cut open the ATM after obtaining a search warrant, and photos show that the machine was operated by Bitcoin Depot. He successfully recovered about $32,000, which included the $25,000 the family paid to the scammer.
Havard noted that the scam call told the family they owed a $25,000 fine and instructed them to deposit the money into a Bitcoin address, after which the family transferred the funds via the Bitcoin ATM.
Bitcoin Depot has been contacted for comments on this incident.
"It sounds like government officials are destroying the property of innocent third parties and taking their money," Reddit user JohnDLG said in response to the news on Wednesday.
Reddit user Jad8484 argued, "This makes no sense unless the owner of the terminal was involved in the scam."
"They added, "It's as absurd as confiscating all the money at a CVS register after someone bought a bunch of gift cards to send to a scammer."
In defense of his actions, Havard stated, "When thieves, criminals, and scammers attempt to exploit the citizens of Jasper County, we will act swiftly and use every resource at our disposal to protect our citizens and their property at all costs."
Havard mentioned that cases involving cryptocurrency scams are "often very complex and difficult to crack."
He stated that his department has not yet determined the whereabouts of the scammer.
This incident comes amid increasing regulatory scrutiny of cryptocurrency ATMs both in the U.S. and abroad.
On June 18, Spokane, the second-largest city in Washington state, banned cryptocurrency ATMs in response to a surge in scams targeting local residents.
The FBI reported in April that there were nearly 11,000 complaints related to cryptocurrency ATM scams in 2024, with losses exceeding $246 million, a 31% increase from 2023.
On June 3, Australia's Transaction Reports and Analysis Centre recently imposed a limit of AUD 5,000 (USD 3,250) on cash deposits and withdrawals at cryptocurrency ATMs.
Related: Arizona Senate votes to revive Bitcoin (BTC) reserve bill
Original article: “Texas Police Cut Open Crypto ATM to Retrieve $25,000 Scammed from Family”
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