A sheriff's department in Texas cut open a crypto ATM to recover approximately $32,000, including $25,000 lost by a family to a scammer impersonating a government employee. The scam occurred in Jasper County, where the impersonator falsely claimed the family owed fines and instructed them to deposit the money into a Bitcoin address via the ATM. Sheriff Chuck Havard defended the decision, stating that his department would leverage all resources to protect citizens against scammers. This incident raises significant discussion in the crypto community regarding the legality and ethics of destroying property to recover stolen funds. Critics argued it destroys the property of innocent parties while failing to address the root issue of scams associated with crypto ATMs. The case highlights growing concerns about crypto ATMs as scams rise, with a report indicating over $246 million in losses related to these scams in 2024 alone, showing a 31% increase from the previous year. Additionally, regulatory measures are tightening around crypto ATMs in various regions, reflecting increasing scrutiny of their operations.

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