DC AG accuses the Bitcoin ATM operator of active enablers

The DC attorney general is pointing at Athena Bitcoin, accusing the ATM operator to knowingly scams that drained the savings of the elderly. Almost all deposits, the researchers claim, come from fraud schemes that the company ignored while pacusing hidden rates.

On September 8, the Office of the Attorney General of the District of Columbia announced He had filed a lawsuit against Athena Bitcoin, one of the largest cryptographic automatic ATM operators.

The demand alleges that the company knowingly allowed its machines to be used as a primary conduit for fraud, ignoring the internal data that showed an amazing 93% of its deposits were driven by the scam. In particular, the AG argues that Athena actively benefited from the wave of crime by imposing and maintaining hidden rates that reached up to 26% in these fraudulent transactions.

ATHENA ATMATIES OF ATHENA Under scrutiny by enabling fraud

According to the attorney general, the seven BTM of Athena in the district became a favorite tool for criminals due to the lack of perceived supervision. The AG Office establishes that this created an “unofficial opportunity for illicit international fraud”, making kiosks out of cash and ramps for the theft of irreversible cryptography.

The aforementioned data revealed that the scammers focused on the elderly, with the median of the age of the victims of 71. This group is often aimed at their perception of lack of technological familiarity and, tragically, a greater reluctance to report having been disappointed.

According to the researchers, the average amount lost per transaction was $ 8,000, a sum that changed life for many in fixed income. In an extreme case detailed in the demand, a single victim was bleeding for $ 98,000 in 19 separate transactions in just days, highlighting the relentless nature of the schemes and the ease with which the operators could repeatedly drain the accounts of the victims.

“Athena Bitcoin machines have become a tool for criminals who intend to exploit the residents of the elderly and vulnerable district,” said Attorney General Brian Schwalb. “Athena knows that her machines are being used mainly by scammers, but chooses to look the other way so that she can continue with considerable hidden transaction rates.

Legal action

The legal action alleges that Athena violated two key laws of the district: the Law of Consumer Protection Procedures and the exploitation of abuse, negligence and financial exploitation of vulnerable adults and the Nursing Law. The suit establishes a pattern of three parts of alleged misconduct.

First, he accuses Athena of actively facilitating scams, noting that the company’s internal records show that in their first five months, consumers directly informed Athena that 48% of all the funds deposited were the result of fraud, a dazzling red flag that the company supposedly ignored.

Secondly, the demand focuses on “illegally benefiting from hidden rates.” While typical rates in digital assets exchanges vary from 0.24% to 3%, Athena BTM supposedly charged up to 26% per transaction.

According to the AG office, these rates were never clearly revealed during the transaction process and, on the other hand, were buried under opaque jargon as the “margin of transaction service” in the terms of service, a document rarely analyzed by users in a situation of hurried and high pressure fraud.

Finally, the AG cites a policy of “without reimbursements” of hard line as a final and overwhelming blow for the victims. Even when the fraud was tested, Athena supposedly refused to return the exorbitant rates that raised or required that the victims sign exemptions of responsibility absorbing the company of any future responsibility, effectively blaming them for their own victimization.