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Federal prosecutors accuse Bitcoin ATM of now supporting cryptocurrency fraud
The U.S. federal prosecutor warns of increasing crime as scammers exploit Bitcoin ATMs to steal money, particularly targeting the elderly. Washington D.C. Attorney General Brian Schwalb stated that many victims are lured into paying “slashing” or “account protection” with Bitcoin at the nearest ATM.
A typical case is Mrs. Diane Reynolds (Maryland) who was scammed out of 13,100 USD after believing that her computer had been hacked. The scammer instructed her to transfer all the money into Bitcoin via an ATM from Athena Bitcoin, a company that operates over 4,000 machines in America.
Schwalb accused Athena of “being aware that the machine was being exploited” but not implementing anti-fraud measures and still charging high fees. He has sued the company for collecting “non-public fees” and lacking control. Athena denied this, stating that they have many protective measures and will defend themselves in court.