A crypto scam in Texas has sparked a legal battle between Lux Vending, operating as Bitcoin Depot, and the McLennan County Sheriff’s Office. The lawsuit alleges that the sheriff’s office unlawfully seized $15,000 from a Bitcoin automated teller machine (ATM). The incident unfolded when an 82-year-old Crawford woman fell victim to a cryptocurrency scam after receiving an email claiming that she had activated a “Ransomware” computer virus while browsing the internet for a cooking recipe.
The elderly woman contacted what she believed to be customer support, only to be directed to a supposed fraud investigator. This individual claimed that her personal information had been compromised and that a check for $15,000 had been written in her name to a mysterious construction firm. To resolve the issue, the scammer advised the victim to withdraw $15,000 in cash from her bank and deposit the money into a Bitcoin ATM located in Waco, Texas.
Following the incident, the victim reported the fraud to the local sheriff’s office, which promptly issued a search warrant on Bitcoin Depot. The sheriff’s office then seized the funds from the ATM and returned them to the elderly woman. Sheriff Parnell McNamara denounced Bitcoin Depot, referring to the company as “a bunch of vultures” attempting to claim money that rightfully belonged to the victim. He even went so far as to say, “Bitcoin Depot can go to hell.”
Legal Battle Ensues: Lawsuit Filed Against McLennan County Sheriff’s Office
Bitcoin Depot, on the other hand, maintained that while the sheriff’s office had the right to confiscate the funds, they did not have the authority to return the money to the victim. The company’s legal team argues that Bitcoin Depot was not responsible for luring the victim into depositing the money, stating that they were not the scammers themselves.
The lawsuit between Bitcoin Depot and the McLennan County Sheriff’s Office is ongoing, with no hearing date scheduled yet. Bitcoin Depot’s attorney, MacVane, has stated that the company is fully committed to cooperating with investigators in the case. According to Sheriff McNamara, the fraudsters responsible for the scam are believed to be located in another country, complicating the efforts to bring them to justice.
This case highlights the challenges and complexities surrounding crypto scams and the role of Bitcoin ATMs in facilitating illicit activities. As cryptocurrencies continue to gain popularity, it becomes crucial for law enforcement agencies, ATM operators, and individuals to remain vigilant against scams and fraudulent schemes. The outcome of this lawsuit may provide valuable insights into the legal responsibilities and liabilities of Bitcoin ATM operators in cases of criminal exploitation.