Texas Considers Ban on Bitcoin ATMs Amid Surge in Scam-Related Losses

The state of Texas is considering a ban on Bitcoin ATMs after a surge in scams involving the machines. The Federal Bureau of Investigation reported $56.8 million in losses tied to Bitcoin ATM scams in Texas last year, the highest total of any US state.

With over 1,179 related reports filed in Texas alone and nationwide losses totaling $389 million, an increase of 58% from a year earlier, officials are reviewing a proposal to ban Bitcoin ATMs altogether. Currently, there are approximately 4,000 Bitcoin ATMs operating in Texas, often installed at gas stations and convenience stores.

State Representative Cole Hefner, chairman of the Texas House Committee on Homeland Security, Public Safety and Veterans' Affairs, signaled plans to introduce related legislation. The move comes as other states have already taken action against Bitcoin ATM operations, with Indiana, Tennessee, and Minnesota banning them statewide, while South Dakota, Wisconsin, and Virginia have imposed transaction limits.

Maine reached a $1.9 million restitution settlement with Bitcoin Depot tied to related losses.