Overview
- In 2025, Texas reported $56.8 million in losses from crypto kiosks, the highest in the U.S., with 1,179 complaints filed with the FBI.
- Nationally, losses surged by 58%, totaling $389 million across 13,460 complaints.
- States such as Indiana, Tennessee, and Minnesota have enacted outright bans on Bitcoin ATMs.
According to FBI data presented to a legislative committee, Texas incurred losses of $56.8 million due to cryptocurrency kiosks last year, marking the highest amount of any state. The state was responsible for 1,179 of the 13,460 complaints recorded nationally in 2025, a year that saw reported losses from these kiosks increase by 58% to a total of $389 million.
These kiosks, which allow users to convert cash into cryptocurrency, are typically located in gas stations and convenience stores, with approximately 4,000 operating throughout Texas. Scammers often convince victims to withdraw cash from their bank accounts to deposit into these machines.
Legislative Insights
The House Committee on Homeland Security, Public Safety, and Veterans' Affairs received testimony regarding foreign financial influences, which quickly shifted focus to cryptocurrency. Representative AJ Louderback remarked, "In my career, I've never seen a more efficient, cleaner way to steal money." Kelley Currie, a fellow at the Atlantic Council, informed the committee that Interpol now regards scamming as an industry akin to drug and human trafficking.
Currie asserted that the kiosks found in gas stations are operated by Chinese money launderers. Although the Justice Department has charged Chinese nationals involved in crypto fraud schemes in Southeast Asia and prosecuted Chinese money laundering networks that facilitate these scams, it has not confirmed that these groups are primarily responsible for operating kiosks.
According to Jesse Saucillo, deputy commissioner at the Texas Department of Banking, recovering funds once they have been transferred is nearly impossible. He explained that money typically goes to an unhosted wallet, which then enters a "mixer," making it extremely difficult to trace and recover. Additionally, the use of AI-generated impersonation of law enforcement and state agencies is making scam calls more convincing.
Regulatory Landscape for Crypto Kiosks in the U.S.
Since 2023, around 30 states have introduced legislation addressing crypto kiosks, as noted by AARP. South Dakota has set limits on transactions to $1,000 per day and $10,000 per month, while also mandating full refunds for fraud victims. States like Wisconsin and Virginia have implemented similar transaction caps. Maine's regulatory body has secured a $1.9 million settlement from Bitcoin Depot to compensate victims.
Indiana became the first state to impose a complete ban on these machines in March, allowing the attorney general to take legal action against both the operators and the locations hosting them. At the time of the ban, nearly 900 kiosks were operational in the state. Following Indiana's lead, Tennessee and Minnesota have also enacted bans.
Rep. Cole Hefner, the committee chair, indicated that Texas might pursue more than just regulations, hinting at potential new legislation. "I have a pretty good idea coming down," he mentioned to his colleagues, describing it as "kind of simple, but kind of abrupt."