- A Maryland retiree lost her entire savings of over $13,000 after being directed by a scammer to deposit the cash into a Bitcoin ATM.
- Washington, D.C.’s Attorney General has filed a lawsuit against ATM operator Athena Bitcoin, alleging the company profits from fraud and has inadequate safety measures.
- The lawsuit claims that 93% of all deposits made through the company’s D.C. ATMs are linked to scams, with fees reaching as high as 26% per transaction.
- Athena Bitcoin denies the allegations, stating it employs “aggressive safety protocols” to protect its customers.
Retiree Loses Life Savings in Sophisticated Scam
Diane Reynolds, a retiree from Maryland, found herself in a financial nightmare after a message flashed across her computer screen. A voice message warned her not to turn the device off and to call a provided number for tech support. This call, however, connected her not to a technician, but to a scam artist who convinced her that hackers had compromised her bank account.
The scammer claimed the only way to safeguard her money was to convert it into Bitcoin immediately. Following their urgent instructions, Reynolds withdrew her entire bank balance—$13,100—and drove to a nearby gas station to deposit it into a Bitcoin ATM operated by Athena Bitcoin.
Official Lawsuit Alleges Company Profits from Fraud
This tragic incident is at the center of a new lawsuit filed against Athena Bitcoin. Washington, D.C., Attorney General Brian Schwalb alleges that Bitcoin ATMs have become a primary tool for criminals to steal money from unsuspecting residents.
“Bitcoin ATMs are a tool that scammers, that criminals, are using to separate people, including D.C. residents, from their hard-earned money,” Schwalb told CBS News. He argues that Athena is aware its kiosks are being used for illicit activities yet has failed to implement sufficient anti-fraud systems.
The lawsuit makes a stunning claim: 93% of all deposits made through Athena’s ATMs in D.C. are connected to scams. Furthermore, the company is accused of profiting from these fraudulent transactions by charging fees as high as 26%.
Athena Bitcoin Pushes Back Against Allegations
In a statement to CBS News, Athena Bitcoin vehemently denied the claims, stating it “strongly disagrees with the allegations” and will fight them in court. The company insists it has robust safety measures in place to protect consumers.
“We employ aggressive safety protocols to protect the financial interests of our customers,” the company said. “Our kiosks employ multiple safeguards, from prominent warnings and daily transaction limits to five separate verification screens designed to stop coerced transactions.”
A Growing Threat to Consumers
Financial scams involving crypto ATMs are becoming increasingly common, according to the Federal Trade Commission. The Better Business Bureau has also identified crypto-related fraud as a top financial scam, with fraudsters frequently targeting senior citizens.
Now, Diane Reynolds is suing Athena Bitcoin and has become an advocate, sharing her story to prevent others from falling victim. “Now I’m an advocate for just telling people this is real,” she said. “Be aware.” Experts warn that any unsolicited claim that your computer has been hacked is a major red flag for a potential scam.
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