The Office of the Attorney General of the District of Columbia has filed a lawsuit against crypto ATM operator Athena Bitcoin, accusing the company of improper fees and inadequate consumer fraud protection.
Allegations Against Athena Bitcoin
DC Attorney General Brian Schwalb alleged that 93% of deposits at Athena’s machines in the first five months were the result of scams. He criticized the company's no-refund policy, which prevents victims from recovering lost funds.
Hidden Fees and Millions in Losses
The lawsuit claims that Athena was charging consumer fees of up to 26% per transaction without disclosing them clearly. Many victims, including the elderly, lost hundreds of thousands of dollars due to scams connected to Athena's ATMs, with one resident losing $98,000.
How to Avoid Scams at Crypto ATMs
Crypto ATM users should be cautious and avoid sending funds to individuals they do not know, particularly if approached unexpectedly. It is crucial to verify information through official channels to avoid falling victim to scams.
This case emphasizes the need for strict regulation and consumer rights protection in crypto ATM operations, highlighting the importance of transparency in financial transactions.
