D.C. Attorney General Brian L. Schwalb has initiated a lawsuit against Athena Bitcoin, Inc., claiming the company has been “financially exploiting District residents” via its cryptocurrency ATMs. The allegations stem from findings that a staggering 93% of the deposits at Athena’s Bitcoin Teller Machines (BTMs) were linked to scams, with many victims being seniors and other vulnerable individuals.
The lawsuit highlights that nearly half of all deposits at Athena’s seven D.C. locations were flagged as fraudulent. Investigators from the Office of the Attorney General (OAG) revealed that victims, on average, were 71 years old, with the median amount lost per scam transaction reaching $8,000. In a distressing case, one individual reportedly lost an extraordinary $98,000 over the course of nineteen transactions within just a few days.
“Athena’s bitcoin machines have become a tool for criminals intent on exploiting elderly and vulnerable District residents,” asserted Schwalb. He emphasized that Athena is knowingly profiting from hidden fees while neglecting to institute adequate anti-fraud measures. The attorney general’s office is now seeking restitution for victims, civil penalties against the company, and an order to compel Athena to alter its business practices to prevent further exploitation.
The OAG claims that Athena has been charging undisclosed fees as high as 26% for transactions. In contrast, fees for Bitcoin transactions through alternative platforms typically range from 0.24% to 3%. Despite the glaring discrepancy, the company purportedly added a confusing reference to a “Transaction Service Margin” in its Terms of Service with no clarity on the actual fee structure.
Moreover, the lawsuit accuses Athena of having a “no refunds” policy that denies victims the opportunity to recuperate their losses. Victims are often faced with stringent requirements that absolve Athena of future liability and shift the blame onto them for not adequately heeding warnings presented on the BTMs.
In light of these findings, the OAG is urging District residents to be cautious and proactive in protecting themselves against potential fraud. Resources have been made available for those seeking to learn about how to identify, prevent, and report abuse, particularly targeting the elderly or vulnerable populations. Residents can contact Adult Protective Services, the Metropolitan Police Department, or the OAG’s Civil Rights and Elder Justice Section for assistance or to file reports on financial exploitation.
