Massachusetts Attorney General Andrea Campbell has expressed optimism about recovering funds for victims of Bitcoin ATM scams through a lawsuit filed against Bitcoin Depot Inc. and Bitcoin Depot Operating LLC. In her complaint, Campbell alleges that the company knowingly facilitated cryptocurrency scams, charged excessive fees, and failed to adequately protect consumers in Massachusetts.
In an interview following the announcement of the lawsuit, Campbell highlighted that more than 80% of customers who used Bitcoin Depot’s kiosks spent $10,000 or more, pointing to significant financial losses for residents exceeding $10 million due to these scams. The lawsuit also claims that employees within Bitcoin Depot expressed concerns about the high volume of fraudulent transactions occurring at their kiosks.
Campbell characterized the situation as “egregious,” stating, “They profited and they misled their investors in terms of the magnitude of that fraud. So it’s egregious to say the least, and we’re hopeful that as we proceed, we can get folks their resources back.”
To address these issues, the Attorney General is seeking a court order that would limit Bitcoin Depot’s ability to process large transactions unless enhanced anti-fraud measures are implemented. She also aims to secure refunds for consumers who have been affected by the scams.
When questioned about the potential for a settlement with Bitcoin Depot, Campbell commented, “We will see. Obviously, the lawsuit is the first step in telling them that we are serious in resolving this case.”
Meanwhile, a legislative bill aimed at enforcing daily transaction limits, providing refunds for fraud victims, and capping fees from all cryptocurrency kiosk operators has been pending in the legislature for nearly a year. It has recently received favorable recommendations from the Legislature’s Joint Financial Services Committee.
In response to the allegations, Bitcoin Depot issued a statement expressing strong disagreement with the claims made by the Attorney General. They asserted that the company does not facilitate scams or mislead users and emphasized their commitment to consumer safety and secure access to cryptocurrency. “We are reviewing the Attorney General’s complaint carefully and remain committed to keeping our customers safe while providing secure access to crypto,” the statement concluded.
