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The Attorney General of the District of Columbia is initiating legal proceedings against Athena Bitcoin, claiming that the cryptocurrency ATM operator enabled fraudulent activities and profited from undisclosed fees associated with scam-related transactions.
Key Takeaways:
- The DC Attorney General has filed a lawsuit against Athena Bitcoin for facilitating scams and concealing fees that can reach as high as 26%.
- A staggering 93% of deposits made at Athena’s DC ATMs were associated with fraudulent activities, primarily affecting elderly individuals.
- The company is accused of engaging in misleading practices and failing to safeguard against exploitation via its cryptocurrency kiosks.
In a lawsuit submitted on Monday, DC Attorney General Brian Schwalb asserted that 93% of Athena’s deposits during the initial five months of its operations in DC were directly linked to scams.
Athena Bitcoin Imposed Fees of Up to 26%
The firm is said to have charged victims undisclosed fees as high as 26% for each transaction, while neglecting to establish adequate protections against fraud.
“Athena is aware that its machines are predominantly utilized by scammers yet opts to ignore this fact to continue profiting from substantial hidden transaction fees,” Schwalb stated in a press release.
This lawsuit is part of a broader national effort to combat fraud associated with cryptocurrency ATMs. The FBI reported nearly 11,000 complaints in 2024, resulting in losses exceeding $246 million.
Several states, including Arizona, Colorado, and Michigan, have implemented transaction limits to mitigate abuse.
Schwalb’s complaint alleges that Athena misled customers by using the term “Transaction Service Margin” in its Terms of Service without clearly indicating that it constituted a fee.
The company faces charges of engaging in deceptive and unfair trade practices, as well as violating regulations aimed at protecting elderly and vulnerable individuals from financial exploitation.
From May to September 2024, Athena reportedly accrued hundreds of thousands of dollars in concealed fees from scam victims in DC.
NEW: We are suing Athena — a Bitcoin ATM company.
DC seniors are being scammed out of life-changing amounts of cash. Athena is facilitating the scams, charging massive hidden fees, and refusing refunds.
We’re fighting to get victims their money back and hold Athena accountable.— AG Brian Schwalb (@DCAttorneyGen) September 8, 2025
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The median age of victims was 71, with the average loss per transaction amounting to $8,000. One elderly individual reportedly lost $98,000 through a single scam executed via an Athena kiosk.
The attorney general’s office characterized Athena’s compliance measures as “ineffective,” accusing the company of creating an “unchecked pipeline for illicit international fraud transactions.”
Schwalb advised the public to refrain from sending money through cryptocurrency ATMs to individuals they have not met, especially those contacted through unsolicited communications.
Scammers frequently impersonate tech support, investment advisors, or bank representatives to coerce victims into transferring funds.
Athena currently operates 13% of cryptocurrency ATMs in the United States, positioning it among the largest entities in the sector, following Bitcoin Depot and CoinFlip, as reported by CoinATMRadar.
More Countries Tighten Regulations on Crypto ATMs
In Australia, AUSTRAC has recently implemented stricter regulations for cryptocurrency ATM operators, including enhanced cash limits and oversight.
The agency declined to renew the registration of a local crypto ATM operator, Harro’s Empires, imposing operational conditions, including transaction limits.
In the United States, Spokane, Washington, has completely prohibited cryptocurrency ATMs, citing their involvement in scams targeting vulnerable residents.
US Senate lawmakers are also working to strengthen regulations at the state and local levels, with one initiative spearheaded by Illinois Senator Dick Durbin.
He has proposed the Crypto ATM Fraud Prevention Act, which aims to introduce legislative measures to protect the public while minimizing inconvenience for compliant users.
New users would be restricted from spending more than $2,000 daily at these machines, with a cap of $10,000 over a 14-day period.
Operators would also be required to engage in a detailed conversation whenever a new user attempts to complete a transaction exceeding $500.
The post DC Sues Crypto ATM Firm Athena Bitcoin Over Scam-Linked Deposits appeared first on Cryptonews.
