Texas Leads the Nation in Crypto Kiosk Fraud Losses of $57M

Overview

• In 2025, Texas recorded $56.8 million in losses from cryptocurrency kiosks, leading the nation with 1,179 complaints to the FBI.
• Nationally, total losses from crypto kiosk fraud reached $389 million, a 58% increase from previous figures.
• States like Indiana, Tennessee, and Minnesota have implemented bans on Bitcoin ATMs to combat fraud.

Texas has emerged as the state with the highest reported losses from cryptocurrency kiosks, tallying $56.8 million in 2025, according to FBI data. This accounted for a significant portion of the 13,460 complaints nationwide, which saw a dramatic 58% rise in reported fraud losses, totaling $389 million.

These kiosks, often found in gas stations and convenience stores, enable users to convert cash into cryptocurrency. Scammers frequently manipulate victims into withdrawing funds from their bank accounts to deposit into these machines.

Legislative Insights

During a recent session of the House Committee on Homeland Security, Public Safety, and Veterans' Affairs, lawmakers discussed the alarming rise of cryptocurrency-related scams. Representative AJ Louderback noted the unprecedented efficiency of these scams, stating, "In my career, I've never seen a more efficient, cleaner way to steal money." Kelley Currie from the Atlantic Council further likened the scamming industry to drug trafficking, emphasizing its global implications.

Currie claimed that many kiosks are managed by Chinese money laundering operations. Although the Justice Department has prosecuted some of these fraudsters, it has not confirmed direct ties between these groups and the kiosks. Jesse Saucillo from the Texas Department of Banking warned that recovering lost funds is nearly impossible due to the use of untraceable wallets and mixers, complicating efforts to track stolen money.

Regulatory Landscape for Crypto Kiosks in the U.S.

In response to the rising fraud, around 30 states have proposed legislation targeting crypto kiosks since 2023. South Dakota has placed transaction limits and mandated refunds for victims, while states like Wisconsin and Virginia have followed suit. Indiana has taken a more drastic approach, becoming the first state to completely ban these kiosks, followed by Tennessee and Minnesota.

Rep. Cole Hefner hinted that Texas may pursue legislative measures beyond regulations, suggesting potential new laws are in the works. "I have a pretty good idea coming down," he said, describing it as "kind of simple, but kind of abrupt."