Texans Lose 57 Million USD to Crypto Kiosks as Lawmakers Consider Ban

Texans lost 56.8 million USD to cryptocurrency kiosks in 2025, the highest amount in the U.S., according to FBI figures presented to a legislative committee. Texas accounted for 1,179 of the 13,460 national complaints, with reported losses to these kiosks rising 58% to 389 million USD.

The kiosks, located in gas stations and convenience stores, convert cash to crypto. Scammers often convince victims to withdraw money from their bank accounts and use it in these machines.

During a hearing by the House Committee on Homeland Security, Public Safety and Veterans' Affairs, Rep. AJ Louderback described the kiosks as a highly efficient method for theft. Kelley Currie from the Atlantic Council stated that Interpol now views scamming as an industry comparable to drug trafficking. Currie claimed that the kiosks are operated by Chinese money launderers, although the Justice Department has not confirmed that these groups typically manage kiosks.

Jesse Saucillo from the Texas Department of Banking noted that recovering funds is nearly impossible once they are transferred to unhosted wallets, which complicates retrieval efforts. He also mentioned that AI-generated impersonations of law enforcement make scam calls more convincing.

Since 2023, around 30 states have enacted crypto kiosk legislation. South Dakota imposes transaction caps and mandates refunds for fraud victims, while Indiana has outright banned the machines. Texas lawmakers are considering more stringent regulations, with Rep. Cole Hefner hinting at a forthcoming bill.

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