Bitcoin and crypto ATMs are increasingly in the news because of their alleged use to perpetuate frauds, particularly on older adults. This month, Brian Schwalb, the Attorney General of the District of Columbia, sued Athena Bitcoin, Inc. (Athena), one of the country’s largest operators of Bitcoin automated teller machines (BTMs), for allegedly charging undisclosed fees on deposits that the operator knows are often the result of scams, and for failing to implement adequate anti-fraud measures.
Schwalb stated that when users discover they have been scammed and seek refunds, Athena imposes a strict “no refunds” policy on their entire transactions—even failing to return the significant undisclosed fees it collects from scam victims. According to data that Schwalb obtained from Athena for the company’s first five months of operations in DC:
- 93% of all Athena BTM deposits were the direct result of scams;
- Nearly half of all deposits were flagged to Athena as the product of fraud;
- Victims’ median age was 71; and
- The median amount lost per scam transaction was $8,000, with one victim losing a total of $98,000 in nineteen transactions over a period of several days.
A major media outlet also is covering the issue and prepared an in-depth report on the trends and the BTMs that are frequently found at gas stations.
Author: sdbrownlow
Student of Design
