East Texas Woman Loses $13,000 in Bitcoin Scam Run by Inmate

An inmate in a Georgia correctional facility allegedly scammed an elderly East Texan out of $13,000 through a crypto scheme. Now, the Smith County Sheriff’s Office wants to ban local crypto kiosks.

How the Bitcoin Scam Targeted an East Texas Woman

The Smith County Sheriff’s Office took a report of theft on March 31 from an elderly woman from Lindale who said she received a call saying that she missed a subpoena from the sheriff’s office. The caller used the name of a real sheriff’s office employee and told the woman she would need to pay $13,000 to avoid being arrested.

The victim was instructed to deposit the money into a Bitcoin kiosk at 302 W. Martin Luther King Boulevard in Tyler, Texas. To further confuse the elderly woman, the suspect used a 903-area code and sent the victim text messages claiming she owed the amount to avoid arrest.

Unfortunately, the victim followed the directions of the scammer and deposited the $13,000 as instructed.

READ MORE: Don't Fall For Phantom Hacker Scam: Tips From FBI Experts

Multiple Agencies Helped Track Down the Suspect

Law enforcement was made aware of the scam and multiple law enforcement agencies including the U.S. Secret Service were assigned to the case. Investigators identified the suspect as Marcus Allen Daniels, an inmate in Georgia.

Daniels has prior armed robbery convictions and is currently housed at the Wheeler Correctional Facility. On April 14 a shakedown of his cell uncovered a cellphone which was seized by correctional officials.

Get our free mobile app

Why Smith County Wants Crypto Kiosks Banned

Evidence on the phone showed multiple messages between Daniels and others discussing Bitcoin wallet numbers and payment methods. Authorities say they have seen similar scams from inmates using illegal cellphones.

An arrest warrant was issued with a $1 million bond, although Daniels is already serving a 20-year sentence in Georgia. The warrant will be served when he is released or paroled from prison.

The victim's money has not been recovered, and officials say it’s extremely difficult to track down at this point.

This is why the Smith County Sheriff’s Office is seeking to ban cryptocurrency kiosks, just like other states including Indiana, Minnesota, and Tennessee.