Crypto ATM Operator Athena Accused of Facilitating Fraudulent Activities

On September 9, U.S. Bitcoin ATM operator Athena was accused of facilitating and profiting from fraudulent activities. It is reported that 93% of funds deposited into Athena’ ATM between May and September 2024 were linked to fraudulent schemes.

Court documents revealed that Athena operates seven ATMs in the District, where users purchase cryptocurrencies like Bitcoin with cash. However, the existence of ATMs has facilitated fraudulent activities, leading elderly victims to directly transfer large sums of money to scammers.

It is reported that when fraudsters lured victims into depositing funds via ATMs, Athena, as the service provider, not only failed to prevent fraudulent transactions but also took advantage of the situation to charge excessive, undisclosed fees up to 26% of the transactions.

Investigation discovered that when victims realized they had been defrauded, Athena offered no resources to recover the funds. Despite Athena's claim that all funds were unrecoverable, the service provider actually retained portions as fees.

Moreover, the operator allowed victims to deposit large sums within a short period of time, despite being aware that the funds were destined for wallets under the control of fraudsters. Most victims were seniors over 70 years old, with average losses exceeding $8,000 per person.

“Not only has Athena done little to nothing to prevent this fraud, but it has instead pocketed hundreds of thousands of dollars in undisclosed fees on the backs of scam victims and adopted policies to prevent these victims from recovering any of their losses.”

BrokersView reminds you

Exercise extreme caution when receiving information or instructions related to cryptocurrency. Due to the anonymous nature of cryptocurrency, victims of scams not only suffer losses but also face significant difficulties in recovering their funds.

If you have also fallen victim to a similar scam, you can report it through BrokersView to help protect other investors from falling into the same trap.