Attorney General Brian L. Schwalb filed a lawsuit on Sept. 8 against Athena Bitcoin, Inc., one of the nation’s largest operators of Bitcoin Automated Teller Machines (BTMs), accusing the company of knowingly profiting from scams that overwhelmingly target elderly residents in the District of Columbia.
The complaint, filed in D.C. Superior Court, charges Athena with violating the District’s Consumer Protection Procedures Act and the Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act.
According to the Office of the Attorney General (OAG), Athena’s machines, seven of which operate in the District, have become a preferred tool for international fraud rings because of inadequate safeguards, hidden fees as high as 26%, and a strict “no refunds” policy that denies victims restitution even when scams are reported immediately.
“Athena’s bitcoin machines have become a tool for criminals intent on exploiting elderly and vulnerable District residents,” Schwalb said. “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.”
OAG Investigation Findings
The Office of the Attorney General’s investigation found that 93% of all deposits made at Athena BTMs in the District during the company’s first five months of operation were the direct result of scams.
Nearly half of all deposits were flagged to Athena as fraudulent.
The median age of victims was 71, and the median amount lost per transaction was $8,000.
In one case, a victim lost $98,000 over 19 separate transactions within days.
Athena markets its machines as a way to quickly buy cryptocurrency but conceals the high fees in misleading “exchange rates.” While online exchanges typically charge between 0.24 and 3%, Athena’s fees run up to 26%.
A District victim who deposited $10,000 in cash into a machine in August 2024 received only $7,463 in Bitcoin. Athena pocketed $2,537 as an undisclosed fee.
“One of the reasons life in America is exhausting for so many people is that someone is always trying to scam you,” social media user and communications professional Alex Taliadoros wrote on X, formerly known as Twitter.
Allegations of Exploiting the Elderly
The lawsuit alleges that Athena deliberately avoided implementing fraud protections, allowing elderly residents to pour life savings into scam wallets already used in previous frauds.
Athena customer service logs show representatives repeatedly told victims there was no way to reverse transactions and directed them to law enforcement, all while keeping thousands of dollars in hidden fees.
Even when the company issued partial refunds, it capped reimbursements at $7,500 and required victims to sign legal releases waiving future claims.
In one case, a District resident who lost $98,000 and paid nearly $26,000 in hidden fees was refunded only $7,500.
“This thread is infuriating,” social media user Mya May wrote in response to Schwalb’s announcement of the suit on X. “Athena has a financial incentive to look the other way while meemaw and pawpaw get scammed.”
Relief Sought
The District seeks restitution for victims, penalties, and a permanent injunction requiring Athena to disclose its fees, overhaul its refund policy, and implement fraud prevention safeguards such as transaction limits.
The lawsuit also seeks to bar Athena from operating in the District until it secures a money transmission license, which officials said it currently lacks.
“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,”Schwalb declared.