Athena Bitcoin Under Fire

D.C.’s attorney general is taking aim at Athena Bitcoin, accusing the ATM operator of knowingly enabling scams that drained seniors’ savings. Nearly every deposit, investigators claim, came from fraud schemes that the company ignored while pocketing hidden fees.

Lawsuit Filed

On September 8, the Office of the Attorney General for the District of Columbia announced it had filed suit against Athena Bitcoin, one of the nation’s largest crypto ATM operators. The lawsuit alleges the company knowingly allowed its machines to be used as a primary conduit for fraud, ignoring internal data that showed a staggering 93% of its deposits were scam-driven.

Profiting from Fraud

Notably, the AG argues that Athena actively profited from the crime wave by imposing and keeping hidden fees that reached as high as 26% on these fraudulent transactions. This is significantly higher than the typical fees on digital asset exchanges, which range from 0.24% to 3%.

Lack of Oversight

Athena’s ATMs under scrutiny for enabling fraud have become a favored tool for criminals due to a perceived lack of oversight. The AG’s office states that this created an “unchecked opportunity for illicit international fraud,” turning the kiosks into off-ramps for cash and on-ramps for irreversible crypto theft.

Targeting Seniors

The cited data revealed that fraudsters focused on seniors, with the median age of victims being 71. This group is often targeted for its perceived lack of technological familiarity and, tragically, a greater reluctance to report having been defrauded. According to investigators, the median amount lost per transaction was $8,000, a life-changing sum for many on fixed incomes.

Extreme Cases

In one extreme case detailed in the suit, a single victim was bled dry for $98,000 across 19 separate transactions in just a matter of days, highlighting the relentless nature of the schemes and the ease with which operators could repeatedly drain victims’ accounts.

Attorney General’s Statement

“Athena’s bitcoin machines have become a tool for criminals intent on exploiting elderly and vulnerable District residents,” Attorney General Brian Schwalb said. “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. Today we’re suing to get District residents their hard-earned money back and put a stop to this illegal, predatory conduct before it harms anyone else.”

Legal Action

The legal action alleges Athena violated two key District laws: the Consumer Protection Procedures Act and the Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act. The suit lays out a three-part pattern of alleged misconduct, including facilitating scams, illegally profiting from hidden fees, and having a “no refunds” policy.

Alleged Misconduct

First, it accuses Athena of actively facilitating scams, noting the company’s own internal logs show that in its first five months, consumers directly reported to Athena that 48% of all deposited funds were the result of fraud, a glaring red flag the company allegedly ignored. Second, the lawsuit zeroes in on what it calls “illegally profiting from hidden fees.”

Hidden Fees

According to the AG’s office, these fees were never clearly disclosed during the transaction process and were instead buried under opaque jargon like “Transaction Service Margin” in the Terms of Service, a document rarely scrutinized by users in a hurried, high-pressure scam situation. This lack of transparency allowed Athena to charge exorbitant fees without users being aware of the costs.

No Refunds Policy

Finally, the AG cites a hardline “no refunds” policy as a final, crushing blow to victims. Even when fraud was proven, Athena allegedly refused to return the exorbitant fees it collected or required victims to sign liability waivers absolving the company of any future responsibility, effectively blaming them for their own victimization. For the latest updates on this case and other cryptocurrency news, visit bitpulse.