Report: Texas Crypto Scam Leads to Lawsuit Between Bitcoin ATM Operator and Local Sheriff

According to sources, Sheriff McNamara is not worried about the legal battle launched by Bitcoin Depot, saying that the company “can go to hell.”

According to reports, Lux Vending, doing business under the name Bitcoin Depot, has filed a lawsuit against the Sheriff’s Office in McLennan County, Texas, accusing it of illegally confiscating $15,000 from BTC automated teller machines (ATMs).

Authorities forfeited the sum to compensate an elderly victim who fell victim to a cryptocurrency scam.

Bitcoin warehouse “can go to hell”

According to local reports, the whole drama began in late April when an 82-year-old Crawford woman was browsing online for cooking recipes. While online, she received an email saying she had accidentally activated a “ransomware” computer virus.

The woman contacted “customer support,” where she was redirected to a specially designated “fraud investigator.” The latter claimed all of her personal data had been compromised, adding that her details were used to write a $15,000 check to a mysterious construction company. The perpetrator advised the victim to withdraw $15,000 in cash from her bank and deposit the money at a Bitcoin ATM in Waco, Texas.

“The woman said she followed instructions and the man had been on the phone with her. The woman said she deposited $15,000, $100 at a time,” the affidavit reads.

Shortly after, she reported the fraud to the sheriff’s office, which issued a search warrant against Bitcoin Depot, seized the funds, and returned them to the woman.

“The $15,000 she put in the machine was still in the wallet she put in the machine. So we got that $15,000 back and brought it back to the office. given to the victim so she would not be further harmed by these horrors," Sergeant Parnell McNamara asserted.

He described the company as “a bunch of vultures” looking to take money that should have gone to the elderly. The sheriff went further, saying the bitcoin warehouse “could go to hell.”

For its part, the firm’s team insisted that the sheriff’s office had the authority to seize the funds but not return them to the woman. The suit also states that Bitcoin Depot was not a scammer, meaning they did not lure victims into depositing their money.

A hearing has not yet been scheduled. MacVane, an attorney for Bitcoin Depot, said the entity is “committed to cooperating in any way possible” to help investigate the case. According to the sheriff, the fraudsters were based in another country.

Missouri Citizen Who Shot BTC ATM

The aforementioned case of an elderly Texas resident is not the only puzzling case involving a Bitcoin ATM. Missouri citizen Matthew Klinger was recently given five years of supervised probation after firing five rounds into such machines.

The reasons behind his actions were unclear, but he said he destroyed the device “so it couldn’t take money from other people.”