TEXAS — Texans lost $56.8 million to cryptocurrency kiosk scams last year, impacting approximately 1,200 individuals. Texas lawmakers are pursuing new regulations for these kiosks, which currently operate without state oversight, in response to these losses.

The amount lost in Texas due to crypto kiosk scams nearly doubled the losses reported in Florida, which had the second-highest amount. The FBI stated that scams using cryptocurrency kiosks have increased rapidly in the United States over the past two years. An estimated 4,000 cryptocurrency kiosks are installed in businesses throughout Texas.

Adam Colby, executive director of the Texas Financial Crimes Intelligence Center, stated, "[Cryptocurrency] kiosks serve no useful purpose, and no rational person would choose to use them, except for the purpose of hiding illicit funds." The Financial Crimes Intelligence Center estimates a 36- to 48-hour window for recovering money stolen through these scams.

In 2023, McLennan County police seized a cryptocurrency kiosk after an 82-year-old woman lost $15,000 in a scam. Bitcoin Depot, a company operating such kiosks, subsequently sued McLennan County over the seizure. Bitcoin Depot later agreed to a settlement, stipulating they were not involved in the fraud, and the $15,000 was returned to the victim. In July 2025, a Jasper County sheriff's deputy sawed open a Bitcoin Depot kiosk with a power tool after a family reported losing $25,000 to a scam. Bitcoin Depot filed for bankruptcy in May 2026. The Financial Crimes Intelligence Center estimates that roughly 70% of people using cryptocurrency kiosks in Texas are over age 60.

Texas State Representative Mitch Little from Lewisville commented on the devices, stating, "I think it seems to suggest that there are way fewer legitimate uses of these devices than you would expect." However, Texas State Representative Cole Hefner from Mount Pleasant expressed a different view, saying, "From the law enforcement experts in the room, I don't see any reason to be regulating them."