Texas lawmakers move to ban crypto kiosks after $57M fraud losses

In 2025 Texas recorded roughly $57 million in losses from cryptocurrency kiosk scams, with 1,179 complaints filed by residents. The state's 13,460 national reports contributed to a total U.S. loss of $389 million, reflecting a 58% surge year‑over‑year. Scammers typically coax victims, often seniors, to withdraw cash and deposit it into kiosks that instantly convert the money into digital assets, after which the funds disappear into unhosted wallets.

State officials are responding with legislation aimed at an outright ban on the machines. Rep. Cole Hefner has signaled plans to introduce a ban when the legislature reconvenes for its 2027 session, while House Speaker Dustin Burrows and Lt. Gov. Dan Patrick have ordered committees to study kiosk regulation and elder fraud throughout 2026. Texas joins a growing coalition of states—Indiana, Tennessee and Minnesota have already enacted bans—to curb the industry. At the federal level, the Crypto ATM Fraud Prevention Act (S. 710) seeks consumer protections for virtual‑currency kiosks. Operators such as Bitcoin Depot and Coinme face an uncertain future as the regulatory tide rises.