- Bitcoin Depot has condemned law enforcement for damaging its machines and seizing cash it says legally belongs to the company
- The company has claimed recent ATM break-ins by police have turned it into a victim, even when trying to help scam victims
- It has pointed to a supportive court ruling and warned that such actions may violate financial laws
Bitcoin ATM operator Bitcoin Depot has pushed back after one of its crypto ATMs was broken into by police in Texas, who were attempting to recover money stolen in a scam. While authorities acted on a warrant, the company argues that destroying its machines and confiscating funds it still legally owns is not only unjust but potentially unlawful. Backed by a recent Iowa Supreme Court ruling, Bitcoin Depot says law enforcement may be overreaching and risking liability, warning that any further such acts could result in legal action.
Police Action “Created Another Victim”
The break-in took place last week when police sheriff’s deputies in Jasper County, Texas, used a circular saw to cut open a Bitcoin Depot ATM, recovering nearly $32,000 in cash connected to a scam targeting an elderly resident. However, the company says that while the intent may have been noble, the execution was reckless; the machine—damaged beyond repair—will cost roughly $14,000 to replace, according to COO Scott Buchanan. Chief Legal Officer Chris Ryan was more blunt, saying the officers “created another victim” by seizing company property under the assumption the funds were already laundered.
Bitcoin Depot maintains that funds inserted into its kiosks belong to the company until the corresponding bitcoin transaction clears. The company argues that even if the customer was tricked into buying bitcoin, the scammer, not the ATM operator, is at fault. Citing a May decision by the Iowa Supreme Court, Bitcoin Depot says it has a legal right to reclaim seized money because the ATM’s terms of service place ownership with the company until a transaction is fully processed.
Company Calls for Cooperation, Not Destruction
Bitcoin Depot noted that it routinely works with law enforcement and can unlock machines remotely if served with a proper warrant, which wasn’t the case here; there was no contact prior to the break-in. “There are good ways to recover funds and bad ways,” Ryan said, adding that smashing a kiosk with power tools is neither necessary nor legal. Ryan has even warned that such seizures could be criminal, especially when machines are broken into without consulting the company.
With crypto crime on the rise and enforcement still catching up, Bitcoin Depot is calling for smarter, more coordinated approaches…ones that don’t involve circular saws and shattered machines.
