Washington prosecutors sue Athena Bitcoin over hidden ATM fees
The DC attorney general accused Athena Bitcoin of hiding fees and failing to prevent fraud. More than 90% of its ATM transactions, prosecutors say, were linked to fraud.
District of Columbia Attorney General Brian Schwalb has filed a lawsuit against crypto ATM operator Athena Bitcoin. Authorities allege the company charged hidden fees of up to 26% per transaction and failed to protect customers from scams.
According to prosecutors, in the first five months of operation in Washington, 93% of all deposits through Athena’s ATMs were linked to crypto scams. The company also enforced a strict “no refunds” policy, leaving victims unable to recover losses.
Athena is accused of violating consumer protection laws and exploiting vulnerable groups – particularly the elderly. The average victim was 71 years old, with a median loss of about $8,000. In one case, a local resident lost $98,000 through Athena machines.
Prosecutors claim Athena labeled its commission as a ‘Transaction Service Margin’ instead of a fee, pocketing hundreds of thousands from scam victims.
This issue affects the broader crypto ATM industry. According to the FBI, Americans filed nearly 11,000 complaints about crypto ATM scams in 2024, with total reported losses exceeding $246 million. Thirteen states, including Arizona and Michigan, have already imposed transaction limits on such machines.
As of 2025, there are about 26,850 crypto ATMs operating in the US. The largest operator is Bitcoin Depot (27.6%), followed by CoinFlip and Athena Bitcoin with market shares of 13.6% and 13% respectively.
Ranking of crypto ATM operators in the US. Source: coinatmradar.com
Athena has not yet commented on the lawsuit.
Recommended