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The Washington, DC, Attorney General’s Office has filed a lawsuit against Athena Bitcoin, a major crypto ATM operator, alleging the company charged undisclosed fees and failed to prevent transactions it knew were linked to scams. The complaint, filed Monday, claims that 93% of deposits made on Athena’s kiosks during its first five months of operations in the district were the “direct result of scams.”
Attorney General Brian Schwalb accused Athena of profiting at the expense of vulnerable residents.
“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,” Schwalb said in a statement.
The lawsuit adds to mounting concerns over the growing crypto ATM scam problem, which has triggered regulatory responses across the United States.
The DC complaint follows alarming national trends. The FBI reported nearly 11,000 fraud complaints tied to crypto ATMs in 2024, with losses totaling more than $246 million. At least 13 states including Arizona, Colorado, and Michigan have since imposed transaction limits on the kiosks in an effort to curb the crypto ATM scam epidemic.
“Athena’s ineffective oversight has created an unchecked pipeline for illicit international fraud transactions,” the attorney general’s office said in its filing. One DC resident reportedly lost $98,000 through a scam facilitated at an Athena machine, while the median victim age was 71 and median transaction loss was $8,000.
Consumer advocates warn that older adults are being disproportionately targeted.
“Crypto ATMs are marketed as fast and easy, but that convenience is being exploited by fraudsters to drain life savings,” — Karen Hobbs, Deputy Director for Consumer Protection at the National Consumer Law Center.
The lawsuit claims Athena charged customers up to 26% in fees per transaction without clearly disclosing the costs. Instead, the company allegedly masked the charges under the term “Transaction Service Margin” in its Terms of Service, avoiding direct reference to fees.
According to the attorney general’s office, Athena “pocketed hundreds of thousands of dollars in undisclosed fees” from scam victims between May and September 2024 alone. These practices, the complaint argues, violate consumer protection laws and statutes designed to protect seniors from financial exploitation.
“Athena has permitted and profited from transactions in which victims are coerced, misled, and manipulated into depositing their life savings into Athena’s machines under fraudulent pretenses,” the lawsuit stated.
Athena has not yet issued a response to the allegations.
Officials urge consumers to take extra precautions when using crypto ATMs. Attorney General Schwalb warned that anyone being asked to deposit funds into a machine by someone they do not know should treat it as a red flag.
Common crypto ATM scam tactics include fraudsters posing as crypto tech support agents claiming a victim’s funds are at risk, or impersonating traders promising guaranteed returns. Experts say consumers should avoid sending money to unknown parties and instead verify requests through official channels.
“There’s no legitimate reason for someone you’ve never met to ask you to send money through a crypto ATM,” — FBI Cyber Division spokesperson, in a January fraud alert.
There are currently around 26,850 crypto ATMs operating across the United States, according to CoinATMRadar. Bitcoin Depot controls the largest share at 27.6%, followed by CoinFlip at 13.6% and Athena at 13%. With their expanding footprint, consumer watchdogs warn that crypto ATM scam schemes will remain a serious risk unless stronger protections are enforced.
The case also highlights a familiar problem in traditional banking undisclosed fees. Regulators have repeatedly penalized financial institutions for similar practices. In April, the Federal Deposit Insurance Corporation ordered Discover Bank to return $1.2 billion in improperly charged fees. Wells Fargo paid $3.7 billion in penalties in 2022 for imposing illegal charges, while Bank of America was fined $250 million in 2023 for so-called “junk fees.”
For regulators, the parallels underscore why crypto firms like Athena are coming under increased scrutiny. As the crypto ATM scam crisis worsens, officials are signaling that consumer protection rules applied to banks will also be enforced on digital asset businesses.
