DC Sues Athena Bitcoin Over Scam-Linked Crypto ATM Deposits

• Major Crypto ATM Operator Athena Bitcoin controls 13% of all crypto ATMs in the U.S., trying to make it one of the biggest players in the industry.
•  DC’s Attorney General declares Athena Bitcoin’s kiosks have now become the main gateway for international fraud, with 93% of deposits linked to scams.
•  The median age of the victims was around 71, with an average loss of nearly $8,000, and one resident lost $98,000 in a single scam.

Athena Bitcoin, the largest crypto ATM operator in the U.S., is now facing legal actions from the District of Columbia’s Attorney General, Brian Schwalb. The petition argues that Athena knowingly allowed scams through its kiosks and profits from hidden fees.

SENIORS SCAMMED THROUGH ATHENA ‘S CRYPTO ATMS

The lawsuit paints a dire scenario of how hackers gained access to Athena’s devices. Most of the victims are old, regularly contacted via unrequested means. The fraudsters are acting as tech support, bank representatives, or investment advisors. Once the people were convinced, they were directed to Athena kiosks to transfer funds and sometimes their life savings.

Schwalb’s office depicted Athena’s compliance efforts as “ineffective,” claiming the company for  enabling an “unchecked pipeline for illicit international fraud transactions.”  In between May and September 2024 alone, Athena reportedly collected hundreds of thousands of dollars from scam victims in DC.  Through hidden fees.

HIDDEN FEES AND MISLEADING TERMS

According to the data from the user named WashInformer, Athena uses one of the most damning claims, of vague language, like “Transaction Service Margin,” to disguise fees as high as 26%. These charges weren’t clearly revealed, leaving victims unaware of the money that they are losing with each transaction.

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ATHENA BITCOIN: A SYSTEM BUILT FOR EXPLOITATION

DC’s lawsuit aligns with a growing national push to regulate crypto ATM fraud. Australia’s AUSTRAC has imposed with tighter cash limits and refused to restart licenses for non-compliant operators. Spokane, Washington, has banned crypto ATMs fully due to their involvement in scams.

Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act, which proposes daily transaction limits and mandatory conversations for higher amounts of transactions. If it passed, new users would be limited to $2,000 per day and $10,000 over 14 days. Any transaction that is over $500 will require a detailed discussion with the operator who aims at preventing impulsive or coerced transfers.

LAWMAKERS AND REGULATORS PUSH BACK

Schwalb urged residents to stop sending crypto via ATMs to anyone they haven’t now personally. “If someone contacts you out of the blue and asks you to send money through a crypto ATM,” he warned, “it’s almost certainly a scam.”

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