Washington, D.C.—October 2025
The U.S. District of Columbia Attorney General Brian Schwalb has filed a landmark lawsuit against Athena Bitcoin, a major cryptocurrency ATM operator, charging the company with enabling and profiting from a vast network of frauds that primarily target seniors and vulnerable residents. The suit alleges that Athena’s Bitcoin ATMs have become a conduit for scammers who manipulate victims into converting their cash into irreversible cryptocurrency transactions that are impossible to track or recover.
According to the complaint, scammers impersonate trusted entities such as banks, law enforcement agencies, or technology companies and falsely claim that victims’ finances are at risk. Victims are then instructed to withdraw large amounts of cash and use Athena’s Bitcoin ATMs to convert the money into cryptocurrency, purportedly to protect their savings or cooperate with official investigations. The scam results in the cash being sent to fraudulent Bitcoin wallets controlled by criminals.
Attorney General Schwalb highlighted the predatory nature of Athena’s business model, stating, “Athena’s bitcoin machines have become a tool for criminals intent on exploiting elderly and vulnerable District 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.” The lawsuit charges that Athena imposes fees as high as 26% on each transaction, many of which the company knows originate from scams.
Data supporting the lawsuit reveals that 93% of deposits made at Athena’s Bitcoin ATMs in Washington, D.C., over a five-month period were linked directly to scams. Once the cash is converted into cryptocurrency, transactions cannot be reversed or refunded, leaving victims without recourse. Athena Bitcoin has denied the allegations, asserting that it employs “aggressive safety protocols,” including prominent warnings, multiple verification steps, and daily transaction limits, designed to prevent fraud. The company says it will contest the lawsuit in court.
The case underscores a growing national crisis as Bitcoin and cryptocurrency ATM-related scams have surged. The Federal Trade Commission reports that fraud losses involving Bitcoin ATMs increased nearly tenfold from 2020 to 2023. The FBI warns that scams involving Bitcoin ATMs have cost Americans almost $250 million in losses so far in 2024, more than double the previous year.
Similar concerns have been raised in other states. Iowa’s Attorney General has criticized crypto ATM providers like CoinFlip and Bitcoin Depot for inadequate fraud protections and questionable refund policies. Meanwhile, regulators in Maine denied Bitcoin Depot a license, citing excessive financial losses, particularly among elderly users.
In response, some states, including North Carolina, have launched public awareness campaigns to alert consumers about cryptocurrency ATM scams. Attorney General Jeff Jackson emphasized the difficulty victims face in recovering lost funds, often exceeding $100,000, due to the irreversible nature of cryptocurrency transactions.
Victims like Pamela Mangum from North Carolina have come forward publicly, recounting losses exceeding $70,000 after being persuaded to invest through Bitcoin ATMs by scam callers posing as investment advisors. Others, such as Washington resident Reynolds, are now advocating for public education to prevent more people from falling prey to these sophisticated frauds.
The D.C. lawsuit against Athena Bitcoin could be a critical step in holding cryptocurrency ATM operators accountable for failing to inhibit criminal exploitation on their platforms and profiting from the misfortunes of scam victims. The case draws attention to the need for stricter regulatory oversight of cryptocurrency kiosks and enhanced consumer protections in this rapidly evolving financial space.