The lawsuit, filed by Attorney General Brian Schwalb, claims Athena Bitcoin turned a blind eye as its machines became a vehicle for scams targeting residents of the District.

According to the case, nearly all deposits processed through Athena’s ATMs during its early months — more than 90% — were linked to fraudulent activity.

Customers often lost thousands of dollars per incident, with one victim reportedly drained of $98,000 across multiple transactions. Despite knowing the risks, prosecutors say, Athena refused to refund users and continued to collect commissions.

READ MORE:

Bitcoin DeFi Could Eclipse Ethereum, Says Cardano Founder

Schwalb described the company’s approach as exploitative, accusing it of prioritizing revenue over consumer safety. “These machines have become tools for criminals,” he said, vowing to claw back funds for victims and stop what he called predatory practices.

Athena controls roughly 13% of the 26,850 crypto ATMs in the U.S., making it one of the largest players in the space.

The case underscores how state and local officials are stepping in with enforcement actions, even as federal regulators ease away from the aggressive litigation-heavy tactics that defined the SEC’s previous leadership.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

The post Washington Sues Crypto ATM Operator Over Fraud Allegations appeared first on Coindoo.