Bitcoin Depot's Chief Legal Officer Chris Ryan has stated that some U.S. law enforcement officials are unlawfully damaging Bitcoin ATMs and seizing cash that rightfully belongs to the company. Ryan highlighted cases of police using brute force to retrieve funds, which may not only harm the machines but also violate legal protocols. Authorities are reportedly prioritizing the return of cash to alleged scam victims without recognizing that the cash in the ATMs is owned by Bitcoin Depot, not the individuals. This misunderstanding could lead to significant financial damage for Bitcoin Depot, as the company spends about $14,000 to replace each damaged kiosk. The firm is entitled to the funds since they argue their transactions are legitimate once a customer purchases Bitcoin, even if they fall victim to scams. The issue is exacerbated by law enforcement's potential misrepresentation of these funds as proceeds of crime. Similar incidents have led to legal battles in various states, but courts have largely ruled in favor of Bitcoin Depot's right to the funds. In 2024, fraud related to crypto ATMs resulted in American losses of over $247 million, emphasizing the increasing dangers surrounding these machines.

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