The previous SEC administration, which attempted to regulate Bitcoin (BTC) and the cryptocurrency market through enforcement and litigation, has given way to a more moderate approach.
Although the cases that started during the old SEC era have been concluded one by one, a new case has been added.
Accordingly, Washington Attorney General Brian Schwalb filed a lawsuit against cryptocurrency ATM operator Athena Bitcoin.
The D.C. attorney general has filed a lawsuit against crypto ATM operator Athena Bitcoin, alleging the company charged hidden fees for deposits it knew were linked to scams and failed to implement adequate fraud prevention measures.
Schwalb alleged that the company knowingly collected substantial commission revenue despite 93% of deposits being linked to fraud in its first five months of operation.
The DC attorney general also said Athena Bitcoin prevented victims from recovering losses from hidden fees and fraud, and criticized the company’s policy of not refunding victims.
“Athena’s Bitcoin ATMs have become a tool for criminals seeking to exploit elderly and vulnerable District residents.
Athena knows its machines are primarily used by scammers, but chooses to turn a blind eye so it can continue pocketing hidden transaction fees.
Today, we are filing a lawsuit to recover District residents’ hard-earned money and put an end to this illegal, exploitative behavior before it harms anyone else.”
The average amount lost per fraudulent transaction was reportedly $8,000, with one victim reportedly losing a total of $98,000 across nineteen transactions over a period of several days.
There are currently 26,850 crypto ATMs in the US, with Athena Bitcoin operating 13% of them.
*This is not investment advice.