D.C. Sues Bitcoin ATM Operator Athena Over Fraud, Hidden Fees Targeting the Elderly

September 8, 2025

Attorney General Brian L. Schwalb has filed a lawsuit against Athena Bitcoin, Inc. , accusing the company of profiting from cryptocurrency scams targeting elderly DC residents through their Bitcoin ATMs.

Who is affected

Elderly residents in the District of Columbia (median age of victims was 71)
Vulnerable adults targeted by international fraud rings
Cryptocurrency users who paid hidden fees as high as 26%
District residents who lost significant amounts of money (median amount of $8,000 per transaction)
One victim who lost $98,000 over 19 separate transactions within days

What action is being taken

Attorney General Brian L. Schwalb has filed a lawsuit against Athena Bitcoin, Inc. in D.C. Superior Court
The Office of the Attorney General (OAG) is conducting an investigation into Athena's operations
The District is seeking restitution for victims, penalties, and a permanent injunction
The lawsuit aims to bar Athena from operating in the District until it secures a money transmission license

Why it matters

93% of all deposits at Athena BTMs in DC during the company's first five months were linked to scams
Nearly half of all deposits were flagged to Athena as fraudulent
Athena conceals high fees (up to 26%) compared to typical online exchanges (0.24-3%)
The company deliberately avoided implementing fraud protections while profiting from scams
Elderly residents lost life savings through machines that allowed deposits into wallets already used in previous frauds
Athena maintained a strict "no refunds" policy and capped reimbursements at $7,500 even for major losses

What's next

The District seeks a permanent injunction requiring Athena to disclose its fees
The lawsuit aims to force Athena to overhaul its refund policy
The action seeks to require implementation of fraud prevention safeguards such as transaction limits
Athena would be barred from operating in the District until it secures a money transmission license

Read full article from source: The Washington Informer