Washington, D.C. Attorney General Brian Schwalb has filed a lawsuit against crypto ATM operator Athena Bitcoin for allegedly imposing hidden fees and facilitating scams targeting elderly consumers through its cryptocurrency ATMs. The lawsuit claims that 93% of deposits made through Athena's machines during its first five months of operation were linked to fraud, yet the company continued to profit from substantial hidden transaction fees.
According to the indictment, Athena Bitcoin knowingly allowed its machines to become tools for criminals exploiting vulnerable District residents, with the Attorney General stating: "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 company operates approximately 13% of the 26,850 crypto ATMs currently in the U.S.
The lawsuit highlights growing regulatory concerns about cryptocurrency ATM operations and their financial transparency. This case follows increased global scrutiny, including New Zealand's consideration of a potential ban on crypto ATMs, and could lead to tighter regulations and heightened compliance costs for crypto service providers.