In a remarkable recovery effort, Texas police, with help from Chain Retrieval, successfully recovered $25,000 lost in a crypto scam involving a Bitcoin ATM.
The incident highlights a growing concern in the U.S.—crypto scammers tricking people into transferring money through crypto ATMs, a method that’s becoming more common due to its speed and anonymity. In this case, fast coordination and blockchain tracking helped stop the fraud in its tracks.
A High-Stakes Crypto Scam Unfolds in Texas
A man from Lakeway, Texas, recently fell victim to a crypto scam that’s increasingly targeting unsuspecting individuals. According to Lakeway police, the victim received a call from someone posing as a federal agent, claiming his identity had been stolen and he was under investigation for money laundering.
In a panic, the victim was told to withdraw funds from his bank and deposit them into a Bitcoin ATM to “secure” his money. The scammers convinced him this was part of a government process to verify his innocence.
Over two days, the victim sent a total of $25,000 in Bitcoin using ATMs in both Lakeway and Austin. After realizing something was wrong, he contacted the police—but by then, the funds had already been sent and converted into cryptocurrency, which is usually considered unrecoverable once processed on the blockchain.
But not this time.
Chain Retrieval’s Fast Action Helps Track Funds
Enter Chain Retrieval, a private crypto investigation firm that specializes in tracing blockchain transactions. Working with the Lakeway Police Department, the team tracked the stolen crypto through blockchain analysis, quickly identifying the addresses involved.
In a rare win, they managed to flag the destination wallet and work with exchanges to freeze the assets before they could be cashed out or moved further.
Within days, the $25,000 in stolen crypto was recovered and returned to the victim.
This success story is unusual. According to the FBI, most crypto scam losses are final, due to the irreversible nature of blockchain transactions. But Chain Retrieval’s involvement signals that blockchain transparency, when used by experts, can help reverse the damage in certain cases.
Police Issue Warning to Public: Don’t Use Crypto in Emergencies
The Lakeway Police Department is now warning residents not to trust any phone call demanding money through crypto ATMs or gift cards. No legitimate government agency will ever ask for cryptocurrency or rush payments over the phone.
They also urge people to be cautious when dealing with unknown callers, especially if they claim to be from the IRS, FBI, or other federal offices.
With crypto scams on the rise, especially those that exploit fear or urgency, experts advise never to act immediately and always verify the source.
Chain Retrieval’s success here offers hope—but it’s not always possible to recover lost funds. Prevention is still the best defense.