Fraud cases carried out through cryptocurrency kiosks in Texas affected 1,200 people last year, with total losses reaching $56.8 million. FBI complaint data shows this amount is the highest among states in the United States. The loss in Florida was about half that.
Regulatory pressure is increasing
Prosecutors and sheriffs have stepped up calls for the state government to regulate crypto kiosks amid rising harm. The exact number of these devices found in gas stations, convenience stores and small retail locations in Texas is unknown. Users can deposit cash and purchase crypto assets, and the amount can be sent to a wallet address in a short time.
Fraud networks especially take advantage of this speed. The Texas Financial Crimes Intelligence Center states that once the money reaches the relevant wallets, the amounts are divided into multiple wallets and moved in a way that makes tracking difficult. The center states that there is usually only a very narrow window of 36 to 48 hours for victims to get their money back, and recoveries are infrequent.
Adam Colby, Director of the Texas Financial Crimes Intelligence Center, said in his presentation to the state parliament committee in May that the legitimate use of these machines is limited, and those who want to hide the flow of illegal money can benefit from this infrastructure.
Common method, fake official calls
In the majority of cases, scammers pose as police officers, court officials, or representatives of electricity and water companies. Targeted individuals are given the justification of a missed grand jury summons, unpaid fine, or urgent government debt. The person is then asked to go to the nearest kiosk and deposit cash while being held on the phone.
A 72-year-old woman living in Austin said a man who identified himself as a Travis County officer threatened to take her into custody. The caller also sent documents containing a real case number and home address via message. The woman realized the device was a Bitcoin machine and refused to deposit money. However, losses were much higher in some files. In one case, losses approached $100,000, while in another, $63,000 was recorded.
Michael Levine, chief criminal prosecutor of the Cyber and Financial Crimes Unit of the Harris County prosecutor’s office, emphasized that crypto assets offer the opportunity to move money much faster and without supervision, which makes it easier to abuse.
No rules statewide
Texas does not impose licensing or direct oversight of these kiosks. Public safety advocates say scammers are taking advantage of this loophole. Some law enforcement units directly seized the devices. Jasper County Sheriff Chuck Havard responded to a Bitcoin Depot device in June 2025 after a family reported losing $25,000. Approximately 32 thousand dollars were refunded from the device.
A similar seizure occurred in McLennan County in 2023. In that incident, an 82-year-old woman lost 15 thousand dollars. Bitcoin Depot later sued the relevant county governments and the parties reached a settlement.
Cities are taking precautions
In San Antonio, losses of approximately $39 million were recorded in 660 reports between January 2024 and April 2026. The city government mandated warning signs in English and Spanish at all 193 kiosks as of July 1. Operators who fail to keep the alerts face fines of $100 to $500 per device per day.
Smith County Sheriff Larry Smith is lobbying for a full statewide ban. The reason behind this call is that an elderly woman lost 13 thousand dollars in a scam that was reportedly run from a prison in Georgia. Indiana, Tennessee and Minnesota are among the states that have banned these machines statewide. Bitcoin Depot had more than 9,000 kiosks across North America. The company filed for Chapter 11 bankruptcy in May after its revenue fell nearly 50 percent year-on-year in the first quarter of 2026. The Massachusetts attorney general’s office also filed a lawsuit against the company in February.
