Texas Weighs Full Ban on Bitcoin ATMs After $56.8 Million in Scam Losses

Texas is considering a full ban on Bitcoin ATMs after scams involving the machines continued to generate losses.

Decrypt reported on July 31 that the Federal Bureau of Investigation recorded $56.8 million in losses from Bitcoin ATM-related scams in Texas last year, the highest total of any US state.

Texas received 1,179 related reports last year. Nationwide, authorities logged 13,460 reports during the same period, with losses totaling $389 million, up 58% from a year earlier.

Bitcoin ATMs are often installed at gas stations and convenience stores. Scammers have exploited them by persuading victims to withdraw cash from banks and deposit it into the machines. About 4,000 Bitcoin ATMs are currently operating in Texas.

With the losses continuing, the Texas state government is reviewing a plan to ban Bitcoin ATMs altogether. State Representative Cole Hefner, chairman of the Texas House Committee on Homeland Security, Public Safety & Veterans' Affairs, said lawmakers are considering measures beyond simple regulation and signaled he may introduce related legislation.

In the US, Indiana, Tennessee and Minnesota currently ban Bitcoin ATM operations outright. South Dakota, Wisconsin and Virginia have imposed transaction limits, while Maine reached a $1.9 million settlement with Bitcoin ATM operator Bitcoin Depot over customer restitution.