A company that operates Bitcoin ATMs has agreed to drop a lawsuit against McLennan County in Texas after the county judge admitted that the sheriff’s office seized funds from one of its machines in error. The lawsuit was filed by Lux Vending, which does business as Bitcoin Depot, after an 82-year-old woman reported being scammed into converting $15,000 into Bitcoin cryptocurrency. The sheriff’s office obtained a search warrant to seize the money from a kiosk machine at a Sunoco store and returned it to the woman, claiming that she was a victim of fraud.

Why did the company sue?

Bitcoin Depot argued that the sheriff’s office violated its due process rights by seizing the funds without proper notice or hearing. The company also claimed that it was the rightful owner of the cash, since the woman had voluntarily exchanged it for Bitcoin at the kiosk. Bitcoin Depot said that the sheriff’s office had no authority to interfere with its business operations or to decide who was a victim of fraud.

Bitcoin ATM Company Drops Lawsuit Against McLennan County After Error Admission
Bitcoin ATM Company Drops Lawsuit Against McLennan County After Error Admission

How was the lawsuit resolved?

The lawsuit was resolved after McLennan County Judge Scott Felton sent a letter to Bitcoin Depot’s chief operating officer, admitting that the funds were seized in error and that it was premature for the sheriff’s office to have returned the money to the woman. Felton said that the county had no intention of harming Bitcoin Depot or its customers and that it was trying to protect the elderly woman from scammers. He also said that the county would review its policies and procedures to prevent similar incidents in the future.

Bitcoin Depot accepted Felton’s apology and agreed to dismiss the lawsuit, allowing the woman to keep her money. The company said that it appreciated the county’s acknowledgment of its mistake and that it hoped to continue serving its customers in McLennan County.

Bitcoin users may also fall victim to various scams, such as phishing, malware, fake websites, and fraudsters who pose as legitimate entities or individuals and trick them into sending money or revealing their personal information. Some scammers target elderly or vulnerable people and use social engineering techniques to persuade them to buy Bitcoin and send it to them.

Therefore, Bitcoin users should exercise caution and do their own research before using any service or platform that deals with cryptocurrency. They should also be aware of the legal and regulatory implications of using Bitcoin in their jurisdiction and comply with the relevant laws and rules.


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