BENTON COUNTY, ARKANSAS, Ark. — An Atlanta-based company is suing the Benton County Sheriff’s Office (BCSO) in Arkansas, claiming the agency seized over $14,000 from the company for the purpose of an investigation. 

Bitcoin Depot Operating, LLC, operates ATM-like kiosk machines, which allow users to convert cash into cryptocurrency. On March 10, 2025, someone created a Bitcoin Depot account using an ATM at a Circle K in Bentonville. They then deposited $14,120 across two separate transactions to a digital wallet.

“Upon information and belief, the [digital wallet] belonged to someone other than the person who deposited the money, something unknown to Bitcoin Depot at the time. If correct, the allocation to a wallet not under control of the user is a violation by the user of Bitcoin Depot’s terms and conditions to which the user expressly agreed,” the lawsuit says. 

The user reportedly contacted Bitcoin Depot customer service to report that he was the victim of a scam. The user told a representative that an individual who claimed to be from the county sheriff’s office said there was a warrant for his arrest for failing to appear for jury duty. 

The person claiming to be an officer instructed the user to make a payment through PayPal, the lawsuit says. Since that was not available, the user reportedly used a Bitcoin Depot ATM. 

“The individual provided a QR code for the Bitcoin ATM user to scan when conducting the transaction. The QR Code directed the funds to a digital wallet that was not owned by the Bitcoin ATM user and is presumably owned by the scammer,” documents say. 

The representative told the user that all transactions are final and recommended contacting local authorities. 

Documents say the user alerted BCSO on March 10 that he had been scammed. A few days later, the sheriff’s office executed a search warrant by seizing $14,120 from the ATM in Bentonville, which was considered evidence. The lawsuit claims the sheriff’s office has not filed the served or returned search warrant in Benton County court. 

“The seized funds are the property of Bitcoin Depot. Bitcoin Depot is the innocent purchaser for the value of the $14,120.00 in U.S. currency. As such, Bitcoin Depot has an ownership interest in the seized cash and is entitled to possession of the cash as a matter of law,” the lawsuit says. 

The plaintiffs say there is nothing unique about the seized cash and that it is, therefore, not evidence in connection with any crime.

Bitcoin Depot claims it has contacted the sheriff’s office and the Benton County Prosecuting Attorney’s Office, asking for the seized funds to be returned. As of the filing date on April 14, documents say the company had not received a response from either, and the funds have not been returned.

The plaintiffs are asking the court to order the sheriff’s office to return the seized funds to its “rightful owner,” Bitcoin Depot. 

Court records show Judge John Scott, Judge Xollie Duncan, and Judge Doug Schrantz have recused themselves from the case. 

5NEWS has reached out to the sheriff’s office and the prosecuting attorney’s office and is still waiting to hear back.