tl;dr
U.S. law enforcement officers have been using force to seize cash from Bitcoin Depot ATMs, potentially overstepping legal authority and damaging company property. Bitcoin Depot executives argue the seized funds rightfully belong to the company and that damage from forced entry leads to costly replac...
U.S. law enforcement agencies have frequently used force to seize cash from Bitcoin Depot ATMs, often causing significant damage to the company’s property and potentially exceeding their legal authority. Bitcoin Depot executives contend that the seized funds belong to the company and highlight that forced entry damages lead to costly replacements, sometimes totaling $14,000 per kiosk under their profit-sharing program. Incidents include law enforcement using power tools and physically breaking into machines, actions Bitcoin Depot opposes, requesting restitution which is seldom granted.
Scammers exploit Bitcoin ATMs to defraud users, leveraging the irreversible nature of cryptocurrency transactions. In 2024 alone, Americans lost over $247 million through crypto kiosks, a 31% increase from the previous year. Once Bitcoin is sent to a scammer’s wallet, recovering the funds is extremely difficult. Bitcoin Depot clarifies that after a transaction completes—when cash is inserted and Bitcoin is sent to a designated wallet—their involvement ends. The company insists that the cash inserted belongs to them, not to the scam victims, a point often misunderstood by some law enforcement officers.
This misunderstanding has led to improper seizures, with courts in several states supporting Bitcoin Depot’s right to retain the cash based on its terms of service, which require users to confirm ownership of the receiving digital wallet. Law enforcement frequently seizes funds from Bitcoin Depot machines, sometimes without proper warrants or notice, damaging property in the process. Bitcoin Depot cooperates by unlocking machines for authorities and works with crypto analytics firms to assist scam victims and prevent fraud.
Bitcoin Depot’s Chief Legal Officer, Chris Ryan, expressed frustration that while law enforcement believes they are helping scam victims, their aggressive seizure tactics create additional victims—the company itself, due to property damage and wrongful fund seizures. The company actively educates police and collaborates with local agencies and former law enforcement professionals to improve understanding of crypto transactions. Despite efforts to facilitate legitimate investigations and victim assistance, Bitcoin Depot condemns “smash and grab” tactics and calls for greater crypto knowledge among law enforcement to reduce costly and counterproductive confrontations.