Texans lost $56.8 million to cryptocurrency kiosk scams in 2025, the highest total of any U.S. state, according to FBI data presented before a Texas legislative committee on Thursday.

The figures were introduced during a hearing of the House Committee on Homeland Security, Public Safety and Veterans' Affairs, which had convened to hear invited testimony on foreign financial influence before the discussion pivoted to cryptocurrency fraud.

Nationally, the FBI logged 13,460 complaints related to crypto kiosks in 2025, with reported losses climbing 58% year over year to $389 million. Texas alone accounted for 1,179 of those complaints.

The machines, which accept cash and convert it into cryptocurrency, are commonly installed in gas stations and convenience stores. The Texas Tribune estimates roughly 4,000 are operating across the state. The United States hosts the largest concentration of cryptocurrency ATMs of any country, according to industry tracking site Coin ATM Radar, and operators are required to register with the Financial Crimes Enforcement Network (FinCEN), though that registration requirement has not prevented the machines from being exploited for fraud. Scammers typically persuade victims to withdraw funds from their bank accounts and deposit the cash directly into a kiosk.

Lawmaker and Expert Testimony

Rep. AJ Louderback did not mince words about the scale of the problem. "In my career, I've never seen a more efficient, cleaner way to steal money," he told the committee.

Kelley Currie, a fellow at the Atlantic Council, testified that Interpol now treats scamming as an industry on par with drug and human trafficking. She went further, claiming that the kiosks found in gas stations "are run by Chinese money launderers." The U.S. Justice Department has charged Chinese nationals in connection with crypto fraud compounds in Southeast Asia and has prosecuted Chinese money laundering networks accused of moving scam proceeds, but has not alleged that such groups broadly operate the kiosks themselves.

Jesse Saucillo, deputy commissioner at the Texas Department of Banking, told lawmakers that recovering stolen funds is nearly impossible once a transaction is completed. Proceeds are typically routed to an unhosted wallet, which then "gets into a mixer" and beyond, making it "very hard to get any of that back." He also noted that AI-generated impersonation of law enforcement and state agencies has made scam calls increasingly convincing.

National Legislative Landscape

Approximately 30 states have enacted legislation addressing crypto kiosks since 2023, according to AARP, which has advocated for tighter oversight citing Federal Trade Commission data showing older Americans are disproportionately targeted and suffer larger average losses in crypto-related scams. South Dakota caps transactions at $1,000 per day and $10,000 per month and mandates full refunds for confirmed fraud victims. Wisconsin and Virginia have approved comparable restrictions.

In Maine, the state regulator secured a $1.9 million settlement from Bitcoin Depot to reimburse affected consumers.

Indiana became the first state to ban the machines outright in March, passing a law that authorizes the attorney general to take legal action against both kiosk operators and the retail businesses hosting them. Nearly 900 machines were operating in Indiana at the time the governor signed the legislation. Tennessee and Minnesota have since enacted similar prohibitions, marking a shift from transaction caps toward full bans that reflects an emerging debate over whether the machines can be adequately regulated at all.

Texas Signals Tougher Action

Committee chair Rep. Cole Hefner indicated that Texas may go beyond regulation. "I got a pretty good idea coming down," he told fellow committee members. "And it's kind of simple, but kind of abrupt."