oag.dc.gov September 8, 2025
Lawsuit Alleges That 93% of Deposits to Athena Bitcoin, Inc. Are From Scams That Target Vulnerable Residents & Seniors & That Athena Profits from Illegal, Hidden Fees

Attorney General Brian L. Schwalb today sued Athena Bitcoin, Inc. (Athena), one of the country’s largest operators of Bitcoin Automated Teller Machines (BTMs), for charging undisclosed fees on deposits that it knows are often the result of scams, and for failing to implement adequate anti-fraud measures. When users discover they have been scammed and seek refunds, Athena imposes a strict “no refunds” policy on their entire transactions—even failing to return the significant undisclosed fees it collects from scam victims.

An investigation by the Office of the Attorney General (OAG) showed that Athena BTMs appeal to criminals because Athena fails to provide effective oversight, creating an unchecked opportunity for illicit international fraud. Athena BTMs are most frequently used by scammers targeting elderly users who are less familiar with cryptocurrency and less likely to report fraud. According to the company’s own data from its first five months of operations in the District:

93% of all Athena BTM deposits were the direct result of scams;

Nearly half of all deposits were flagged to Athena as the product of fraud;

Victims’ median age was 71; and

The median amount lost per scam transaction was $8,000, with one victim losing a total of $98,000 in nineteen transactions over a period of several days.
“Athena’s bitcoin machines have become a tool for criminals intent on exploiting elderly and vulnerable District residents,” said Attorney General Schwalb. “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. Today we’re suing to get District residents their hard-earned money back and put a stop to this illegal, predatory conduct before it harms anyone else.”

Athena is one of the country’s largest BTM operators and has maintained seven BTMs in the District. BTMs allow users to purchase cryptocurrencies such as Bitcoin with cash and then deposit the cryptocurrency into a digital “wallet.” The wallet should be owned by the consumer purchasing the cryptocurrency, but in the scams conducted with Athena’s machines, exploited users send large sums of money directly to swindlers.

OAG’s lawsuit alleges Athena violates the District’s Consumer Protection Procedures Act and Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act by:

Facilitating financial scams. Athena is well aware that the safeguards it has implemented are insufficient to protect customers from fraud. Athena’s own logs show that during its first five months of operation in the District, 48% of all funds deposited in the company’s BTMs resulted in consumers reporting directly to Athena that they had been the victim of a scam.

Illegally profiting from hidden fees. Athena BTMs charge District consumers fees of up to 26% per transaction without clearly disclosing them at any point in the process. Bitcoin purchased through other apps and exchanges typically have fees of 0.24% to 3%. In June 2024, Athena added a confusing and misleading reference to a “Transaction Service Margin” in its lengthy Terms of Service, but the magnitude of the margin is never disclosed, nor is the word “fee” ever mentioned.

Refusing to refund victims of fraud. Athena further deceives users through a refund policy that either outright denies scam victims refunds or arbitrarily caps them, even though Athena could easily return the hidden transaction fees it pockets. Athena also requires fraud victims to sign a release that frees the company of all future liability and blames victims for not sufficiently heeding onscreen BTM warnings.
With this lawsuit, OAG seeks to force Athena to bring Athena’s operations into compliance with District law, secure restitution for victims, and penalties for the District.

A copy of the lawsuit is available here.

This case is being handled by Assistant Attorneys General Anabel Butler and Jason Jones, Investigator Lu Lagravinese, and Civil Rights and Elder Justice Section Chief Alicia M. Lendon.

Resources for District Residents

Elder financial abuse is all too common and largely underreported. It happens to people across all socioeconomic backgrounds and can be perpetrated by anyone having a connection to the senior resident, whether through a family, personal, or business relationship. Elders or vulnerable adults may be hesitant to report abuse because of fear of retaliation or lack of physical or cognitive ability to report the abuse, or because they do not want to get the alleged abuser in trouble.

Resources to help residents learn how to detect, prevent, and report abuse of the elderly or vulnerable adults are available here.

Bitcoin Depot, an operator of Bitcoin ATMs, is notifying customers of a data breach incident that has exposed their sensitive information.
In the letter sent to affected individuals, the company informs that it first detected suspicious activity on its network last year on June 23.

Although the internal investigation was completed on July 18, 2024, a parallel investigation by federal agencies dictated that public disclosure of the incident should be withheld until it was completed.

“On July 18, 2024, the investigation was complete, and we identified your personal information contained within documents related to certain of our customers that the unauthorized individual obtained,” explains Bitcoin Depot in the letter.

“Unfortunately, we were not able to inform you sooner due to an ongoing investigation. Federal law enforcement requested that Bitcoin Depot wait to provide you notice until after they completed the investigation.”

The type of data that has been exposed in this incident varies from individual to individual and may include:

Full name
Phone number
Driver’s license number
Address
Date of birth
Email address
Bitcoin Depot is one of the largest Bitcoin ATM networks in the United States, operating 8,800 machines in the U.S., Canada, and Australia.

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