Athena Bitcoin Sued by D.C. AG for Enabling Scams via Bitcoin ATMs
TLDR:
- The D.C. Attorney General has filed a lawsuit against Athena Bitcoin for facilitating fraud through its Bitcoin ATMs.
- Investigators claim that 93% of deposits at Athena Bitcoin ATMs were linked to fraudulent transactions.
- Athena Bitcoin allegedly profited from hidden fees of up to 26% per transaction, which were not clearly disclosed.
- The lawsuit reveals that seniors, particularly those around 71 years old, were targeted in these scams.
- Athena Bitcoin is accused of refusing refunds to victims, even after fraud was confirmed.
The Attorney General’s Office of the District of Columbia has filed a lawsuit against Athena Bitcoin. The suit accuses the company of facilitating fraud through its Bitcoin ATM machines. According to the allegations, the company allowed fraudsters to exploit its services while profiting from hidden fees.
93% of Athena Bitcoin ATM Deposits Linked to Fraud
The lawsuit claims Athena Bitcoin’s machines were used as a primary tool for scams. Investigators say that 93% of deposits at Athena’s Bitcoin ATMs came from fraudulent transactions. The Attorney General’s Office further states that the company ignored internal data revealing the scam activity.
“Athena knew its machines were used for fraud, yet it turned a blind eye to continue profiting,” said Attorney General Brian Schwalb. The lawsuit highlights that the Bitcoin ATM operator was aware of the fraud but kept the fees hidden, resulting in substantial profits. These hidden fees reached as high as 26% per transaction, according to the complaint.
Athena Bitcoin Refused Refunds for Scam Victims
The Attorney General’s Office pointed out that Athena Bitcoin imposed steep, undisclosed fees. Typical fees for digital asset exchanges range from 0.24% to 3%, but Athena charged up to 26%. Investigators claim that these fees were concealed under vague terms, making it difficult for users to recognize them.
The lawsuit further accuses Athena Bitcoin of refusing to refund victims who were scammed. Even when fraud was confirmed, the company allegedly maintained a “no refunds” policy. Victims were required to sign liability waivers, absolving Athena of responsibility, which investigators argue is an unfair practice.
Lawsuit Reveals Seniors Lost Up to $98,000
Athena Bitcoin’s Bitcoin ATMs became a favored tool for criminals targeting seniors, according to the Attorney General’s Office. The lawsuit reveals that the median age of victims was 71 years old. These individuals, often unfamiliar with technology, were more vulnerable to fraud and less likely to report the crime.
In many cases, victims lost significant sums, with some losing up to $98,000. One individual reportedly lost this amount over 19 separate transactions within a short period. These fraudulent schemes caused immense financial harm, especially to seniors on fixed incomes.
The D.C. Attorney General’s Office legal action accuses Athena of violating two key laws, the Consumer Protection Procedures Act and the Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act.
The post Athena Bitcoin Sued by D.C. AG for Enabling Scams via Bitcoin ATMs appeared first on Blockonomi.
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