What happened?
The District of Columbia’s Attorney General has initiated legal action against Athena Bitcoin, a cryptocurrency ATM operator. The company is accused of enabling fraudulent activities and profiting from undisclosed fees connected to scam-related transactions. It is alleged that 93% of Athena’s deposits during the first five months of operation in DC were directly associated with frauds.
Who does this affect?
This situation primarily impacts elderly individuals, who have been the main targets of these scams. The median age of victims was 71 and losses per transaction averaged $8,000. In one case, an elderly person reportedly lost $98,000 through a single scam transaction. Overall, this issue affects all users of Athena’s ATMs, as they may be unknowingly charged undisclosed fees as high as 26% per transaction.
Why does this matter?
This case is significant as it highlights potential vulnerabilities and malpractices within the crypto ATM industry, which could undermine user trust and impact future regulations. Athena Bitcoin is a major player in the sector, operating 13% of all crypto ATMs in the U.S. The lawsuit comes amid increased regulatory scrutiny on crypto ATM operators across the country, and could potentially influence future practices and policies in the sector.