A Texas county sheriff used a power tool to cut open a local crypto ATM after a family was reportedly scammed out of $25,000—an unusual move that has stirred debate within the crypto community.
According to local reports on Tuesday, the incident occurred in Jasper County, northwest of Houston, where a scammer posing as a government official convinced a family to deposit funds into a Bitcoin (BTC) ATM.
Sheriff Chuck Havard obtained a search warrant and forcibly opened the ATM—reportedly operated by Bitcoin Depot—recovering approximately $32,000 in total, including the $25,000 lost by the family.
Sheriff Havard stated that the scammer convinced the family they owed $25,000 in fines and directed them to deposit the amount into a specific Bitcoin address. The family complied, using the local Bitcoin ATM to transfer the funds.
Bitcoin Depot, the operator of the ATM, was contacted for comment regarding the incident.
Crypto Users Question Police Tactics in ATM Seizure Incident
The police action has sparked backlash among some crypto users, who questioned the legality and logic behind dismantling the ATM.
“Sounds like maybe government employees destroyed an innocent third party’s property and stole his money,” wrote Reddit user JohnDLG in response to the incident.
Another user, Jad8484, echoed the sentiment: “Unless it was the kiosk owner who was scamming, this makes no sense. It’s like confiscating all the money from a CVS register after someone bought a bunch of gift cards to send to scammers.”
Sheriff Havard, however, defended the decision. “When thieves, low-lifes, and scammers attempt to take advantage of the citizens of Jasper County, we will work swiftly and utilize every resource at our disposal to protect our citizens and their property at all costs,” he reportedly said.
Sheriff Calls It a Tough Case to Crack
Sheriff Havard acknowledged that cases involving crypto scams “can be very complex and difficult to solve,” adding that his department has yet to track down the scammer responsible.
The incident unfolds amid increasing scrutiny of crypto ATMs in the U.S. and abroad. On June 18, Spokane—Washington state’s second-largest city—implemented a ban on crypto ATMs following a rise in scams targeting local residents.
According to an April report from the FBI, nearly 11,000 complaints were filed and over $246 million was lost to crypto ATM scams in 2024—a 31% jump from the previous year.
Elsewhere, on June 3, Australia’s financial intelligence agency, AUSTRAC, imposed a new cap of 5,000 Australian dollars (about $3,250) on cash deposits and withdrawals at crypto ATMs, in a move aimed at curbing abuse of the machines.
