Texas Reports $56.8 Million in Crypto ATM Fraud Losses in 2025; Legislators Consider Stricter Measures

According to Huoxing Finance, FBI data disclosed to the legislative committee shows that in 2025, losses related to cryptocurrency ATMs in Texas amounted to $56.8 million, involving 1,179 complaints—the highest of any U.S. state. Nationwide, there were 13,460 related complaints, with reported losses rising 58% year-over-year to $389 million. Cryptocurrency ATMs accept cash and convert it into cryptocurrency, commonly located at gas stations and convenience stores. Texas Tribune estimates that Texas has approximately 4,000 such devices; scammers trick victims into withdrawing cash from bank accounts and depositing it into these machines. Jesse Saucillo, Deputy Commissioner of the Texas Department of Banking, stated that once funds are transferred, recovery is nearly impossible, as the money typically flows into non-custodial wallets and then through mixers. He added that AI-generated impersonations of police and state agencies have made phone-based scams more convincing. According to AARP data, since 2023, around 30 U.S. states have enacted laws related to cryptocurrency ATMs. Indiana banned such devices entirely in March, followed by Tennessee and Minnesota. Rep. Cole Hefner, Chair of the Texas House Committee, said the state is considering measures beyond mere regulation.