She deposited the money into a Bitcoin ATM, but a detective with the Raleigh Police Department (RPD) was able to physically get the money out of the ATM and return it to Miller.

“He came to my house to get all the receipts, went over to that Bitcoin machine, had it taped up with crime tape, and subsequently was able to … my money was still actually in that machine,” Miller said, explaining what the detective did. “And he was able to get it unlocked with the armored vehicle and all that stuff, and physically brought back all my money.”

The judge explained in his ruling that the Bitcoin ATM companies have not been accused or suspected of any wrongdoing. And once the cash is deposited in exchange for Bitcoin, the ATM owner becomes the lawful owner of the cash.

General statute does allow the cash to be seized as evidence of a crime. However, the same statute “does not support a return of the currency to the victim,” the judge pointed out.

So, money RPD seized from Bitcoin ATMs – that they hoped to return to victims – must now be given back to the Bitcoin ATM companies.

With a major recovery tool now gone, it’s even more important to recognize and not get involved in these scams from the start.