On September 8, 2025, the Attorney General of the District of Columbia sued one of the country’s largest operators of Bitcoin Automated Teller Machines (BTMs) alleging that the company’s BTMs charged undisclosed fees and relied heavily on scams and fraud. The Attorney General accused the company of failing to implement adequate anti-fraud measures. As a result of this failure, the Attorney General alleged that 93% of their BTM transactions were the direct result of scams and nearly half of all deposits to the BTMs were flagged as the product of fraud. In addition, the complaint claims that the company’s strict “no-refunds” policy left defrauded customers – most of whom were elderly and vulnerable – without recourse when they were exploited by fraudsters or scams.
The complaint alleges violations of D.C.’s Consumer Protection Procedures Act and its Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act, and requests relief in the form of a permanent injunction to bring the company in line with District consumer protection and licensing laws, damages and restitution, and a civil penalty for each individual violation identified.
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