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

• A lawsuit was filed by Bitcoin Depot against the Sheriff’s Office of McLennan County, Texas, regarding an elderly victim who became a victim of a crypto scam.
• The 82-year-old woman was redirected to a “fraud investigator” who claimed that someone wrote a $15,000 check to a construction firm using her details.
• The victim was instructed to withdraw and deposit the money into a Bitcoin ATM in Waco, Texas.

Crypto Scam in Texas Led to Lawsuit

Bitcoin Depot – doing business as Lux Vending – recently filed a lawsuit against the sheriff’s office of McLennan County, Texas for unlawfully seizing $15,000 from their Bitcoin automated teller machine (ATM). This amount was meant to be compensation for an elderly victim who fell prey to cryptocurrency fraud.

Victim Contacted “Fraud Investigator”

The whole incident started when an 82-year-old Crawford woman was looking up recipes online and received an email stating she had accidentally activated a “Ransomware” computer virus. Upon contacting customer support, she was rerouted to the so-called “fraud investigator” who informed her that someone had written a $15,000 check using her personal information without her knowledge.

Instructions To Withdraw Funds

The wrongdoer then told the victim to make a cash withdrawal from her bank and deposit it in Bitcoin ATM located in Waco, Texas. According to an affidavit filled out by the authorities: “The woman said she followed the instructions and that the guy stayed on the phone with her the entire time. The woman said she deposited $15,000, $100 at a time.”

Sheriff McNamara’s Reaction

Sheriff McNamara allegedly remained unfazed by this legal battle started by Bitcoin Depot saying they “can go to hell.”

Bitcoin Depot Filed Lawsuit Against Sheriff’s Office

In response, Bitcoin Depot filed suit against McLennan County’s Sheriff’s Office claiming they unlawfully seized funds from their ATM with no legal justification or cause.