Texas lawmakers are weighing a statewide ban on Bitcoin ATMs after fraud tied to the machines generated $56.8 million in losses for residents last year, according to FBI data. That was the highest total recorded by any US state.
The review comes as scams involving crypto kiosks continue to spread. Texas logged 1,179 related reports over the same period, and officials are now examining whether restrictions short of a ban would be enough to address the problem.
Losses in Texas outpaced every other state
The FBI said Texas residents lost $56.8 million last year in scams connected to Bitcoin ATMs. Nationally, authorities received 13,460 reports and recorded $389 million in losses tied to the schemes.
The nationwide loss figure was up 58% from the previous year, underscoring the pace at which this category of fraud has grown. Against that backdrop, Texas stood out both for the total amount lost and for the number of reports filed.
How the scams typically work
Bitcoin ATMs are commonly found in gas stations and convenience stores. In the cases cited by authorities, scammers direct victims to withdraw cash from their bank accounts and then feed the money into the machines.
That setup has made the kiosks a recurring tool in fraud schemes, with victims persuaded to convert cash into crypto transfers under false pretenses. The article does not specify what form a statewide ban would take or how quickly it could be pursued.
Lawmakers are looking beyond regulation
Texas currently has about 4,000 Bitcoin ATMs in operation. With losses continuing, state officials are reviewing a proposal that would prohibit the machines statewide rather than simply tighten oversight.
State Representative Cole Hefner indicated that lawmakers are considering measures beyond basic regulation and said he plans to introduce related legislation. For now, the proposal remains under consideration rather than adopted policy.
Other states have already taken action
Texas is not the first state to move against Bitcoin ATM operators. Indiana, Tennessee, and Minnesota have already banned Bitcoin ATM operations statewide, according to the source article.
Elsewhere, South Dakota, Wisconsin, and Virginia have imposed transaction limits instead of outright bans. Maine took a different route, reaching a $1.9 million restitution settlement with Bitcoin Depot tied to related losses.
The next confirmed step in Texas is the planned introduction of legislation by Hefner, which would clarify whether the state pursues a full ban or another enforcement approach.
Source: en.bloomingbit.io