Washington, D.C. Attorney General Brian L. Schwalb has filed suit against Athena Bitcoin, Inc., accusing the Bitcoin ATM operator of failing to stop scams that preyed on elderly residents and of concealing steep transaction markups.
The complaint — which targets Athena’s network of about 4,100 Bitcoin ATMs across five countries — brings two counts under the District’s Consumer Protection Procedures Act for deceptive and unfair trade practices and also alleges financial exploitation of vulnerable adults.
According to the 30-page filing, Athena’s kiosks in the city took deposits that were overwhelmingly the result of fraud: in the firm’s first five months of operation in D.C., the suit says 93% of funds deposited at Athena machines were “the product of outright fraud.” The complaint also cites broader FBI data that Americans reported roughly $189 million in losses from Bitcoin ATM scams in 2023.
Schwalb’s office alleges Athena hid markups inside a fee-inclusive price labeled as an “exchange rate,” sometimes charging customers as much as 26% on transactions — fees not disclosed on the company’s website or on machine receipts, the suit says. In one example, a customer was allegedly charged as if Bitcoin traded at about $80,300 when market prices were near $60,000, sending roughly $7,500 to a scammer while Athena kept about $2,500.
Receipts reportedly fail to itemize fees, refunds are presented as limited or unavailable, and any offered refunds were allegedly capped and conditioned on a confidential release that shields Athena from further claims.
The lawsuit joins growing pressure on Bitcoin ATM operators from lawmakers and prosecutors who argue operators must do more to prevent kiosk-enabled fraud. Previous cases have tested how much responsibility operators bear when victims are told to ignore on-screen warnings by scammers.
Why it matters: the case could reshape operator obligations for consumer disclosures, refund policies and anti-fraud controls at Bitcoin ATMs — potentially prompting stricter oversight or best-practice rules nationwide. Consumers should remain cautious around cash-to-crypto kiosks and verify transactions when possible.
Source: Decrypt. Read the original coverage for full details.