Elderly Victims and Hidden Fees Fuel Lawsuit Against Crypto ATM Operator Athena Bitcoin

Washington’s attorney general takes aim at crypto ATM operator Athena Bitcoin

The growing crackdown on cryptocurrency ATMs in the United States has intensified, with the Attorney General for the District of Columbia, Brian Schwalb, filing a lawsuit against Athena Bitcoin. The legal action claims the company charged undisclosed fees and failed to implement meaningful safeguards to protect consumers from scams — many of which disproportionately targeted elderly and vulnerable individuals.

Widespread exploitation through crypto ATMs

According to the lawsuit, Athena Bitcoin knowingly facilitated fraudulent activity through its ATM network, leaving thousands of individuals exposed to devastating financial losses. Alarmingly, Schwalb’s office alleged that during Athena’s first five months of operating in Washington, 93% of deposits were directly tied to scams.

Adding fuel to the controversy is Athena’s no-refund policy. Victims — many of whom were retirees or elderly individuals — were left with no avenue to reclaim either the funds lost through scams or the transaction fees imposed by the company. The median age of those affected was 71, with the median loss per transaction reaching $8,000. One D.C. resident reportedly lost $98,000 after being manipulated into using an Athena kiosk.

“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,” Schwalb said, criticising the company’s business model.

Undisclosed fees and deceptive practices

The lawsuit accuses Athena of implementing a disguised “Transaction Service Margin” instead of clearly labelling its charges as consumer fees. Customers were allegedly paying up to 26% per transaction in hidden costs, which Schwalb’s office described as highly deceptive. Investigators estimate Athena pocketed hundreds of thousands of dollars in undisclosed fees within just a few months of operation.

The charges against Athena include deceptive trade practices and violations of laws designed to protect older adults from exploitation. The Attorney General argued Athena’s “ineffective oversight” effectively opened a pipeline for international fraudsters to exploit U.S. residents.

The rising scrutiny of crypto ATMs

This lawsuit arrives at a time of heightened regulatory focus on the role of cryptocurrency ATMs in fraudulent schemes. The FBI has reported that in 2024 alone, nearly 11,000 fraud complaints stemmed from crypto ATM transactions — generating losses of $246 million. In response, at least 13 states including Arizona, Colorado, and Michigan have moved to impose transaction limits in an effort to reduce exposure to scams.

Currently, more than 26,850 crypto ATMs operate across the US. Bitcoin Depot leads the market with around 27.6% of installations, followed by CoinFlip at 13.6% and Athena Bitcoin claiming 13% of market share. The lawsuit against Athena casts fresh doubts on the long-term credibility of the ATM channel within the crypto economy.

Lessons from broader financial scandals

The issue of hidden and undisclosed fees isn’t unique to digital assets. Traditional banking institutions have also long faced scrutiny for “junk fees” and unfair financial practices. The Federal Deposit Insurance Corporation (FDIC), for instance, ordered Discover Bank to return $1.2 billion in overcharged fees earlier this year. Wells Fargo paid $3.7 billion in penalties in 2022 for imposing unlawful charges on mortgages, while Bank of America faced fines exceeding $250 million for similar practices in 2023.

These cases suggest that both traditional and decentralised finance are struggling with consumer transparency — a problem with major implications for regulatory enforcement, ethical conduct, and the future of crypto recruitment as companies seek compliance and consumer-protection experts.

Talent demand in compliance and consumer protection

Financial misconduct cases such as Athena’s lawsuit represent more than regulatory scandals — they are also sparking a fresh wave of demand for crypto recruiters, compliance professionals, and fraud-prevention specialists. For a blockchain recruitment agency, this signals a surging need for talent in:

• Fraud detection and AML (Anti-Money Laundering) analysts trained in Web3 systems.
• Compliance officers specialising in cryptocurrency and regulatory frameworks.
• Cybersecurity specialists safeguarding transactions at the interface between fiat and digital assets.
• Consumer protection experts to build systems preventing predatory exploitation.

The influx of high-profile fraud complaints and tightening regulation is pushing companies within the blockchain sector to strengthen internal teams and improve KYC/AML infrastructure. As a result, web3 recruitment firms are now being trusted more than ever with blockchain talent acquisition strategies across compliance, risk management, and forensic investigation.

Advice for crypto ATM users

Authorities warn consumers to stay vigilant when interacting with cryptocurrency kiosks. According to the attorney general’s office:

• Do not deposit funds at a crypto ATM if instructed to do so by someone you don’t know, particularly if contact originated from a random phone call, email, or text message.
• Reject offers that promise outsized or risk-free profits. Such language is a hallmark of deception.
• If targeted, contact the relevant company or institution directly through verified official channels rather than responding to unsolicited claims of urgency.

Fraudsters often impersonate technical support staff or financial advisors claiming to ‘secure’ funds at risk. Once payments are sent via these kiosks, recovery is near impossible.

Crypto fraud and job market response

The Athena lawsuit is just one of many signals highlighting the intersection between digital asset innovations and regulatory oversight. With fraud losses scaling into hundreds of millions annually, the demand for crypto talent with specialised expertise in compliance, fraud detection, and AI-powered monitoring solutions is escalating. This is spurring growth for web3 headhunters and blockchain recruiters who can help firms adapt and comply with the evolving legal landscape.

As regulators intensify efforts to secure digital finance from exploitation — including elder abuse, high-fee fraud, and social engineering schemes — the spotlight is firmly shifting toward the responsibility of service providers. In tandem, it is also shaping the trajectory of crypto recruitment, driving organisations to prioritise skills that bridge transparent business practices with cutting-edge blockchain systems.