Cryptocurrency scam losses hit $56.8 million in Texas! What are officials doing in response?

Last year, cryptocurrency scams involving kiosks in Texas affected nearly 1,200 individuals, resulting in a staggering $56.8 million in combined losses. According to FBI complaint data, this is the highest amount recorded among all U.S. states, while Florida trailed at around half that figure. The surge in fraud has triggered alarm and fueled calls for greater regulation at both the state and local levels.

Regulators turn up the heat

Prosecutors and law enforcement officials are stepping up their appeals to the state government for stricter oversight of crypto kiosks. These machines, found in Texas at gas stations, grocery stores, and small retail shops, have no officially tracked total. They let customers deposit cash and immediately purchase cryptocurrencies, which are then transferred to a designated wallet address in minutes.

Criminal syndicates are exploiting this rapid turnaround. The Texas Financial Crimes Intelligence Center has reported that after funds reach designated wallets, they are quickly spread across numerous accounts, obscuring their trail. Victims typically have just 36 to 48 hours to recover their money, and such reversals are rare.

Fraudsters exploit fake authority calls

In many cases, scammers pose as law enforcement officers, court officials, or even utility company representatives. They tell victims they have missed jury duty, owe a fine, or have some urgent government debt. Often, while keeping the victim on the phone, scammers instruct them to go to the nearest kiosk and deposit money.

One 72-year-old Austin woman recounted receiving a threatening call from someone claiming to be a Travis County official, sending court files with real case numbers and her home address via text. Recognizing she was being urged to use a Bitcoin machine, she refused to pay. Not all have been so fortunate: in some cases, losses have neared $100,000, with others reporting $63,000 vanishing in a single scam.

No state-level regulation in place

Texas currently imposes no licensing or direct oversight for these kiosks, a gap that consumer safety advocates argue is fueling the crime spree. Some law enforcement agencies have taken drastic action, seizing kiosks outright. Jasper County Sheriff Chuck Havard intervened after a family lost $25,000 in June 2025, helping recover about $32,000 from a Bitcoin Depot machine.

A similar incident unfolded in McLennan County in 2023, where an 82-year-old woman reported a $15,000 loss. In that case, Bitcoin Depot later sued local county governments before striking a settlement agreement.

City-level measures and industry turmoil

San Antonio witnessed $39 million in losses from 660 reported incidents between January 2024 and April 2026. Starting July 1, the city has made English and Spanish warning signs mandatory on all 193 kiosks. Operators who fail to comply face daily fines between $100 and $500 per machine.

Meanwhile, Smith County Sheriff Larry Smith is pushing for an outright statewide ban, driven by reports of an elderly woman losing $13,000 to a scheme operated from a Georgia prison. Indiana, Tennessee, and Minnesota have already enacted similar bans. Bitcoin Depot, once operating over 9,000 kiosks in North America, filed for Chapter 11 bankruptcy protection in May following a 50% annual revenue drop in early 2026. The Massachusetts Attorney General also took the company to court in February.

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