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Crypto Kiosk Operator Bitcoin Depot Sues Texas Sheriff's Office – CryptoMode

 1 year ago
source link: https://cryptomode.com/crypto-kiosk-operator-bitcoin-depot-sues-texas-sheriffs-office/
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In a surprising turn of events, a bitter legal dispute has emerged between a cryptocurrency kiosk operator and the McLennan County Sheriff’s Office, stemming from an elaborate fraud scheme that manipulated an older woman into depositing her money into a cryptocurrency ATM.

The Victim and the Scam

A resident of Crawford, Texas, an 82-year-old woman fell prey to a meticulously planned swindle that led her to deposit $15,000 of her funds into a cryptocurrency ATM resembling Bitcoin’s ATMs. Coming to the defense of the elderly victim, local law enforcement swiftly intervened to help the woman recover her misplaced funds. However, the Sheriff’s office’s prompt action to confiscate the money from the ATM resulted in a lawsuit from the ATM’s operators.

As reported by KWTX, a local news outlet, Bitcoin Depot, a subsidiary of Lux Vending, is contesting the Sheriff’s Office’s actions in court, alleging an unlawful cash seizure. The company contends that the police circumvented the proper legal processes by returning the funds to the victim.

Deconstructing the Fraud

The scam’s backbone was a deceptive email containing a hyperlink to a seemingly harmless recipe. Unbeknownst to the victim, clicking on the link triggered a ransomware attack. In distress, the woman sought help from “customer support,” who connected her to a so-called “fraud investigator.” This alleged investigator asserted that her personal information was at risk, further escalating the situation.

The self-proclaimed investigator advised the victim to steer clear of law enforcement and her bank, feeding into her anxiety. Next, he convinced her that a $15,000 check had been issued in her name and instructed her to withdraw the amount from her bank and deposit it into a designated Bitcoin machine. Under the scammer’s watchful eye via phone, the distressed woman complied, depositing the money in $100 increments.

Cryptocurrency ATM Operator Responds

In expressing empathy for the exploited customer, Bitcoin Depot has disputed the McLennan County Sheriff’s Office’s conduct. John MacVane, a Houston attorney representing Lux Vending, argued that the actions were “unlawful” and infringed on Bitcoin Depot’s rights under Texas and US Constitutions.

McLennan County Sheriff, Parnell McNamara, dismissed these allegations as “a bunch of hogwash.” He expressed his distaste for the situation, labeling the operators as “vultures” attempting to claw back money from an already victimized person. He maintained that the money rightfully belonged to the woman and decried the lawsuit as “preposterous.”

The legal clash in McLennan County has underscored an ongoing global debate surrounding cryptocurrency ATMs. Across the globe, lawmakers are grappling with questions about their legal status and future.

None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.


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