The District of Columbia has accused Athena Bitcoin
The lawsuit, brought by Attorney General Brian Schwalb, claimed that Athena Bitcoin allowed scams to flourish through its kiosks and took advantage of users by not clearly stating the charges.
Athena Bitcoin began operating in DC in May 2024. Within the first five months, officials reported that the majority of transactions, around 93%, were connected to scams.
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Many of the affected users were elderly or otherwise vulnerable. Schwalb’s office alleged that one customer alone lost $98,000 through an Athena ATM.
Instead of using straightforward language to explain transaction costs, Athena Bitcoin reportedly used the term “Transaction Service Margin” in its Terms of Service. The word “fee” was never mentioned.
According to the attorney general, this wording misled users and prevented them from understanding the charges they were being assessed. The complaint stated that fees reached as high as 26% per transaction and were not shown clearly at any point during the process.
Additionally, Athena Bitcoin is accused of failing to implement proper anti-fraud protections. The complaint described the company’s machines as a “pipeline for illicit international fraud transactions” and alleged that the company turned a blind eye while continuing to profit.
The lawsuit also said the company does not allow users to recover lost funds, even in cases where scams are clearly involved. This approach left victims without a means to recover their money or even reclaim the fees they had been charged.
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