The District of Columbia’s Attorney General is taking legal action against Athena Bitcoin, alleging the crypto ATM operator facilitated fraud and profited from undisclosed fees tied to scam-related transactions.
Key Takeaways:
- DC Attorney General sues Athena Bitcoin for enabling scams and hiding fees as high as 26%.
- 93% of Athena’s DC ATM deposits were linked to fraud, targeting mostly elderly victims.
- The firm is accused of deceptive practices and failing to prevent exploitation through its crypto kiosks.
In a lawsuit filed Monday, DC Attorney General Brian Schwalb claimed that 93% of Athena’s deposits during its first five months of operation in DC were the direct result of scams.
Athena Bitcoin Charged Fees of Up to 26%
The company allegedly charged victims undisclosed fees of up to 26% per transaction, while failing to implement proper safeguards against fraud.
“Athena knows that its machines are being used primarily by scammers yet chooses to look the other way so that it can continue to pocket sizable hidden transaction fees,” Schwalb said in a statement.
The lawsuit comes amid a growing national crackdown on crypto ATM fraud. The FBI logged nearly 11,000 complaints in 2024, amounting to over $246 million in losses.
Multiple states, including Arizona, Colorado, and Michigan, have enacted transaction caps in an attempt to curb abuse.
Schwalb’s filing alleges Athena misled customers by referring to a “Transaction Service Margin” in its Terms of Service, without clearly disclosing it was a fee.
The firm is being charged with deceptive and unfair trade practices, and violating laws designed to protect elderly and vulnerable adults from financial exploitation.
Between May and September 2024, Athena allegedly collected hundreds of thousands of dollars in hidden fees from scam victims in DC.
The median victim age was 71, and the average loss per transaction was $8,000. One elderly resident reportedly lost $98,000 through a single scam conducted via an Athena kiosk.
The attorney general’s office described Athena’s compliance measures as “ineffective,” accusing the firm of enabling an “unchecked pipeline for illicit international fraud transactions.”
Schwalb urged the public to avoid sending funds via crypto ATMs to people they haven’t met, particularly those reached through unsolicited messages.
Scammers often pose as tech support, investment advisors, or bank representatives to pressure victims into transferring funds.
Athena currently operates 13% of crypto ATMs in the U.S., making it one of the industry’s largest players, behind Bitcoin Depot and CoinFlip, according to CoinATMRadar.
More Countries Clamp Down on Crypto ATMs
In Australia, AUSTRAC recently introduced stricter rules for crypto ATM operators, including tighter cash limits and monitoring.
The regulator refused to renew the registration of a local crypto ATM operator, Harro’s Empires. The agency placed operating conditions, including transaction limits, on them.
In the US, Spokane, Washington, has banned crypto ATMs entirely, citing their use in scams targeting vulnerable residents.
Lawmakers in the US Senate are also attempting to tighten laws on a state and local level, with one attempt led by Illinois Senator Dick Durbin.
He has introduced the Crypto ATM Fraud Prevention Act, which would bring in legislative measures designed to protect the public — while attempting to limit inconvenience for law-abiding users.
New users would be prevented from spending more than $2,000 a day at one of these machines, rising to $10,000 in a 14-day period.
Operators would also need to have a detailed conversation whenever a new user is trying to complete a transaction with a value of over $500.
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