Attorney General’s Office in Washington, DC, sued Athena Bitcoin, the operator of a crypto ATM, for charging undisclosed charges on deposits that were linked to scams. The company also failed to implement adequate anti-fraud measures.
DC Attorney General Brian Schwalb alleged The 93% deposit rate on Athena for the first five months was announced on Monday. “direct result of scams” And criticized firm’s “no-refund” policy. According to him, this prevents the victims from recovering unreported fees or scam losses.
“Athena knows that its machines are being used primarily by scammers yet chooses to look the other way so that it can continue to pocket sizable hidden transaction fees.”
The FBI reported that nearly 11,000 complaints of fraud In 2024, over $246 millions in losses will have been incurred by kiosks. To reduce the impact, at least 13 states have implemented limits on transactions, such as Arizona, Colorado, and Michigan. crypto ATM fraud.
Athena didn’t immediately reply to an inquiry for comment.
Athena profits’six figures’ from fees that are not disclosed
Schwalb’s Office filed a court document alleged Athena charges up to 26% in fees per transaction. “clearly disclosing them at any point in the process.”
Athena is a software program that provides users with information about a variety of topics. “Transaction Service Margin” Its Terms of Service explains where “fee” It was never said.
Athena has been charged with deceptive, unfair and illegal trade practices as well as violations of laws protecting vulnerable adults. elderly from abuseNeglect and financial exploitation.
Athena, according to the Attorney General’s Office, allegedly abused children. “pocketed hundreds of thousands of dollars in undisclosed fees” The first five month of operation in DC, between May and Sept 2024, saw a large number of vulnerable or elderly scam victims.
According to the report, the median age was 71 years old, and the median amount lost per transaction is $8,000. The filing also claimed that one DC resident had lost $98,000 as a result of a fraud perpetrated by an Athena kiosk.
Schwalb’s Office claimed Athena had “ineffective oversight,” What it says creates an “unchecked pipeline for illicit international fraud transactions.”
“Athena has permitted and profited from transactions in which victims are coerced, misled, and manipulated into depositing their life savings into Athena’s machines under fraudulent pretenses.”
How to protect yourself from being scammed when using crypto ATMs
Schwalb referred to this as “predatory conduct,” Crypto ATM users shouldn’t send funds They should not send money to someone that they don’t know, or to someone who randomly contacted them.
Related: Tasmanian police find top 15 crypto ATM users are scam victims
Scammers often pose as crypto-tech support specialists, saying that the victims’ funds are at risk. Or, they may pretend to be a trader, promising to make huge profits with little or no risk.
People who receive requests at random should not reply to these and instead contact the institution, or individual they are claiming to represent.
There are currently 26,850 crypto ATMs The US according CoinATMRadar. Bitcoin Depot is the owner of 27.6% machines followed by CoinFlip at 13,6% and Athena with 13%.
The banking industry is rife in scandals involving unreported fees
The DC Attorney General claims that it has been illegal to not disclose the fees. prolific issue The banking sector is a growing industry.
Federal Deposit Insurance Corporation has ordered Discover Bank, in April 2019, to reimburse customers for fees of around $1.2 billion. Wells Fargo will be fined $3.7 billion by December 2022.
Bank of America also had to pay out over $250 Million for charging “junk fees” In 2023,
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Source: cointelegraph.com
