Police hack bitcoin ATM to return $25,000 to fraud victim

The sheriff of Jasper County, Texas, USA, used a «grinder» to hack a bitcoin ATM after it was found that it used in fraud.

The ATM was broken into after all the necessary warrants were obtained, the county police reported on Facebook, and its residents were fraudulently lured out of $25,000. Investigators seized a total of $31.9 thousand from the ATM. The police note that despite the return of the money, the online fraudsters have yet to be caught.

«On June 16th, 2025, at approximately 5:00 pm, the Jasper County Sheriff’s Office was notified that a Jasper County family had been scammed. Chief Deputy Pulliam and Deputy Gray immediately responded to the victim’s residence and began gathering information. During the investigation, it was discovered this Jasper County family was scammed out of $25,000.00 at a location in Hardin County. Chief Deputy Pulliam immediately traveled to Hardin County and located the scam location. With the assistance of JCSO Investigator David Lampman, a state search warrant was obtained, served and executed in the attempt to recover the victim’s money. During the investigation, it was discovered that a Bitcoin kiosk styled ATM machine was found to be in possession of the victim’s money. With the assistance of Hardin County S.O. and Investigator Lampman, Chief Pulliam was able to gain access into the Bitcoin kiosk where a total of $31,900 was seized and returned back to Jasper County, pending a seizure hearing» the statement said.

It seems that Bitcoin Depot has also become an indirect victim of the scam due to the hacked ATM. It only provides money services and converts bitcoin into fiat and vice versa. The company reported that it is cooperating with the investigation and noted that law enforcement efforts should have been applied to the recipient’s wallet or crypto exchange, but not to the ATM. «We actively support and train law enforcement agencies, especially those less familiar with cryptocurrencies».

Поліція зламала біткоїн-банкомат, щоб повернути жертві шахрайства $25 000 — A great place to make a $25,000 deal, what could go wrong?” / JCSO, Facebook

The police are not releasing details of the fraud, including, how the money ended up in the ATM. Victims should not expect a quick return — the authorities must make a decision on the seizure in their favor. This case is not so predictable, as the funds were actually seized from an uninvolved intermediary.

Source: Tom`s Hardware