From the Pikeville Police Department:

There have been reports of a recent wave of phone and internet scams involving Bitcoin machines. Scammers are posing as law enforcement officers and telling victims that they have a warrant for their arrest. They then instruct the victims to go to a Bitcoin machine at a location of their choosing and deposit a predetermined amount of money, or to buy gift cards and enter the numbers into the machines.

It is important to remember that legitimate law enforcement agencies will never call and ask you to pay money to avoid a warrant. Bitcoin is a decentralized digital currency used for encrypted, peer-to-peer transactions and no legitimate business or government agency accepts Bitcoin as a form of payment. Additionally, no government agency accepts gift cards as payment either.

If you believe you have been a victim of any internet crime, please contact the Federal Bureau of Investigation Internet Crime Complaint Center at www.ic3.gov, along with your local law enforcement agency. Stay vigilant and protect yourself from these scams!