Suit alleges Athena Bitcoin charged hidden fees of up to 26% on scam deposits
Nearly all BTM transactions in D.C. tied to fraud, with victims’ median age 71
Officials say Athena ignored red flags and refused to refund elderly victims
District of Columbia Attorney General Brian L. Schwalb has filed suit against Athena Bitcoin, Inc., one of the nation’s largest operators of cryptocurrency ATMs, accusing the company of profiting from scams that have cost elderly residents tens of thousands of dollars. The lawsuit, announced Tuesday, alleges Athena imposed steep, undisclosed fees while failing to put in place safeguards against fraud.
Athena operates seven bitcoin ATMs, known as BTMs, in the District. The machines allow customers to purchase cryptocurrency with cash, but investigators say scammers often direct victims to send those funds straight to fraudsters’ digital wallets.
Data reveals staggering fraud rates
An investigation by Schwalb’s office found that during Athena’s first five months in D.C., 93% of all deposits were linked to scams and nearly half were flagged as fraudulent by victims themselves. The median victim was 71 years old and lost $8,000 per scam transaction. In one case, a resident lost $98,000 across 19 deposits in just a few days.
“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.”
Hidden fees and no refunds
According to the complaint, Athena charged users fees as high as 26% without disclosing them — far above the typical 0.24% to 3% charged by mainstream exchanges. The company also allegedly refused to refund victims, even when notified of fraud, and required those seeking partial refunds to sign liability waivers freeing Athena from future claims.
Athena’s approach, investigators said, effectively left elderly and vulnerable residents defenseless against international fraud schemes.
Seeking restitution and penalties
The lawsuit 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. Schwalb’s office is seeking restitution for victims, civil penalties, and reforms to bring the company into compliance with District law.
The 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.
How seniors can spot common crypto scams
Urgent demands for payment — Scammers often pose as government agents, utility companies, or tech support and pressure victims to “pay immediately” using bitcoin ATMs.
Instructions to deposit at a BTM — Any request to buy cryptocurrency at an ATM and send it to a stranger’s digital wallet is a red flag.
Unfamiliar contacts — Calls, emails, or texts from unknown numbers directing you to transfer money are almost always fraudulent.
Too-good-to-be-true offers — Promises of guaranteed returns, sweepstakes winnings, or quick profits in crypto are a common hook.
Refusal to provide details — Scammers discourage victims from speaking with family, banks, or law enforcement.