Bitcoin Depot Criticizes Police Actions Against Bitcoin ATMs

Bitcoin Depot, a leading provider of Bitcoin ATMs in the United States, has publicly condemned what it describes as "rogue" and unlawful actions by some law enforcement officers who have forcibly seized cash from its machines—often causing significant property damage in the process.

Law enforcement officials have used brute force, including power tools, to access Bitcoin Depot kiosks and seize cash, sometimes without proper warrants or legal procedures.

In a notable Texas incident, police seized $32,000 from a Bitcoin Depot ATM, rendering the machine unusable and requiring a full replacement. The company estimates the cost of replacing such a kiosk at around $14,000.

Bitcoin Depot's Chief Legal Officer, Chris Ryan, asserts that these actions often violate property rights and overstep legal boundaries, creating new victims by destroying company property and seizing funds that, according to the company and recent court rulings, rightfully belong to Bitcoin Depot.

The cash held in Bitcoin Depot ATMs is considered company property until a transaction is completed. Once a customer inserts cash and provides a wallet address, the Bitcoin is transferred, and the transaction is finalized.

Many law enforcement agencies misunderstand this business model, sometimes incorrectly treating the physical cash as proceeds of crime, when in fact the scam typically involves the irreversible transfer of Bitcoin to a scammer's wallet.

The Iowa Supreme Court and other state courts have ruled that Bitcoin Depot is entitled to the cash within its machines, reinforcing the company's stance against unauthorized seizures.

The company reports that most law enforcement seizures do not involve physical destruction, but a subset of officers bypasses warrant protocols and threatens to forcibly access kiosks.

Bitcoin Depot maintains a team, including former law enforcement professionals, to educate authorities about crypto operations and to facilitate proper complaint filings for scam victims.

The company is actively collaborating with law enforcement and crypto analytics firms to trace stolen funds, but criticizes "smash and grab" tactics that damage property and complicate recovery efforts for scam victims.

Crypto scams involving Bitcoin ATMs have surged, with Americans losing over $247 million in 2024 alone through such schemes.

Scammers often impersonate authorities or trusted entities and instruct victims to deposit cash at Bitcoin ATMs, after which the Bitcoin is sent directly to the scammer’s wallet—making recovery extremely difficult.

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