DC Files Lawsuit Against Athena Bitcoin Over Scam-Linked Deposits

Washington, D.C. Attorney General Brian L. Schwalb filed a lawsuit against Athena Bitcoin, Inc., accusing the cryptocurrency ATM operator of enabling scams that exploit vulnerable residents, particularly seniors. The suit, lodged in D.C. Superior Court, alleges that 93% of deposits at Athena’s seven D.C. Bitcoin ATMs were scam-related, with victims losing a median of $8,000 per transaction. Schwalb claims Athena charged undisclosed fees up to 26%, far exceeding typical crypto exchange rates of 0.24%–3%, and enforced a strict “no refunds” policy, even retaining fees that could be returned.

The lawsuit, supported by a five-month investigation, accuses Athena of violating D.C.’s Consumer Protection Procedures Act and the Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act. It highlights inadequate anti-fraud measures, noting that 48% of deposits in Athena’s first five months (May–September 2024) were flagged as fraudulent in company logs, yet ignored. Scammers often targeted elderly residents, with a median victim age of 71, using tactics like impersonating government officials to coerce cash deposits into Athena’s ATMs.

Schwalb seeks restitution for victims, civil penalties, and an injunction to halt Athena’s operations until it complies with D.C. law, including obtaining a money transmission license. An Athena spokesperson denied the allegations, asserting robust safety protocols and consumer education efforts, and vowed to fight the case in court. This lawsuit, amid a national crackdown on crypto ATM fraud—FBI reported $246 million in losses in 2024—could reshape oversight of crypto kiosks, urging stronger compliance to protect consumers.