The Washington, D.C., Attorney General’s Office has filed a lawsuit against Bitcoin Automated Teller Machines (BTMs) operator Athena Bitcoin. It accused the company of charging undisclosed fees on transactions linked to scams and failing to implement adequate anti-fraud measures.
On Monday, Attorney General Brian Schwalb claimed that 93% of deposits made at Athena’s BTMs in its first five months of operation in D.C., from May to September 2024, were tied to fraudulent activities. The lawsuit has laid the charges against Athena, claiming that the firm has profited from hidden fees by earning hundreds of thousands of dollars.
It also stated that the firm had maintained a no-refund policy that prevented victims from recovering losses. Further in the lawsuit, Schwalb’s office alleged Athena had charged consumer fees as high as 26% per transaction without clear disclosure, referring only to a vague “Transaction Service Margin” in its Terms of Service.
The company is also accused of deceptive trade practices and violating laws protecting vulnerable adults, particularly the elderly, with the median victim age being 71 and a median loss of $8,000 per transaction. The filing also states that Athena reportedly facilitated a scam that cost a DC resident $98,000.
Global Crackdown on Crypto ATM Fraud
The lawsuit highlights Athena’s alleged failure to address fraud, describing its oversight as ineffective and enabling an unchecked pipeline for illicit transactions. This action comes amid a broader crackdown on crypto ATM fraud. The FBI has reported nearly 11,000 crypto ATM complaints in 2024, resulting in over $246 million in losses. At least 13 states have imposed transaction limits to curb such fraud.
Athena Bitcoin operates 13% of the 26,850 crypto ATMs in the U.S., according to CoinATMRadar. Schwalb’s office also urged crypto ATM users not to send funds to unverified contacts and to verify requests through official channels to avoid scams.
Further, different countries are also enforcing strict rules on crypto ATMs. On July 9, New Zealand announced that the country would ban crypto ATMs under anti-money laundering reforms. Additionally, on June 26, 2025, Australian police encountered scams involving crypto ATMs. Prior to that, on June 3, Australia’s financial watchdog, AUSTRAC, announced that it would implement new rules for crypto ATM operators.
Also Read: U.S. Treasury Sanctions 19 Entities Over Crypto Scams
