The District of Columbia’s Lawyer Normal is taking authorized motion in opposition to Athena Bitcoin, alleging the crypto ATM operator facilitated fraud and profited from undisclosed charges tied to scam-related transactions.
Key Takeaways:
- DC Lawyer Normal sues Athena Bitcoin for enabling scams and hiding charges as excessive as 26%.
- 93% of Athena’s DC ATM deposits have been linked to fraud, concentrating on principally aged victims.
- The agency is accused of misleading practices and failing to forestall exploitation via its crypto kiosks.
In a lawsuit filed Monday, DC Lawyer Normal Brian Schwalb claimed that 93% of Athena’s deposits throughout its first 5 months of operation in DC have been the direct results of scams.
Athena Bitcoin Charged Charges of As much as 26%
The corporate allegedly charged victims undisclosed charges of as much as 26% per transaction, whereas failing to implement correct safeguards in opposition to fraud.
“Athena is aware of that its machines are getting used primarily by scammers but chooses to look the opposite means in order that it may well proceed to pocket sizable hidden transaction charges,” Schwalb stated in a press release.
The lawsuit comes amid a rising nationwide crackdown on crypto ATM fraud. The FBI logged almost 11,000 complaints in 2024, amounting to over $246 million in losses.
A number of states, together with Arizona, Colorado, and Michigan, have enacted transaction caps in an try and curb abuse.
Schwalb’s submitting alleges Athena misled clients by referring to a “Transaction Service Margin” in its Phrases of Service, with out clearly disclosing it was a payment.
The agency is being charged with misleading and unfair commerce practices, and violating legal guidelines designed to guard aged and weak adults from monetary exploitation.
Between Could and September 2024, Athena allegedly collected a whole bunch of hundreds of {dollars} in hidden charges from rip-off victims in DC.
NEW: We’re suing Athena — a Bitcoin ATM firm.
DC seniors are being scammed out of life-changing quantities of money. Athena is facilitating the scams, charging large hidden charges, and refusing refunds.
We're combating to get victims their a refund and maintain Athena accountable.— AG Brian Schwalb (@DCAttorneyGen) September 8, 2025
The median sufferer age was 71, and the common loss per transaction was $8,000. One aged resident reportedly misplaced $98,000 via a single rip-off carried out through an Athena kiosk.
The lawyer basic’s workplace described Athena’s compliance measures as “ineffective,” accusing the agency of enabling an “unchecked pipeline for illicit worldwide fraud transactions.”
Schwalb urged the general public to keep away from sending funds through crypto ATMs to folks they haven’t met, notably these reached via unsolicited messages.
Scammers typically pose as tech assist, funding advisors, or financial institution representatives to stress victims into transferring funds.
Athena at the moment operates 13% of crypto ATMs within the U.S., making it one of many trade’s largest gamers, behind Bitcoin Depot and CoinFlip, in line with CoinATMRadar.
Extra International locations Clamp Down on Crypto ATMs
In Australia, AUSTRAC just lately launched stricter guidelines for crypto ATM operators, together with tighter money limits and monitoring.
The regulator refused to resume the registration of an area crypto ATM operator, Harro’s Empires. The company positioned working situations, together with transaction limits, on them.
Within the US, Spokane, Washington, has banned crypto ATMs solely, citing their use in scams concentrating on weak residents.
Lawmakers within the US Senate are additionally making an attempt to tighten legal guidelines on a state and native degree, with one try led by Illinois Senator Dick Durbin.
He has launched the Crypto ATM Fraud Prevention Act, which might herald legislative measures designed to guard the general public — whereas making an attempt to restrict inconvenience for law-abiding customers.
New customers could be prevented from spending greater than $2,000 a day at one in every of these machines, rising to $10,000 in a 14-day interval.
Operators would additionally have to have an in depth dialog every time a brand new consumer is attempting to finish a transaction with a price of over $500.
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