Company has 37,000 Bitcoin ATMs globally
In a recent report by Watchdog detailing the unfortunate incident involving a Fort Worth resident scammed into depositing $10,000 into a bitcoin ATM located at a convenience store, numerous readers expressed interest in learning more about Athena Bitcoin, the company that owns the machine. Many individuals questioned why the industry is not more closely regulated, considering the Federal Trade Commission’s warning that these ATMs serve as a gateway for scammers.
While there is no direct evidence linking Athena to these fraudulent activities, it is evident that their machines were utilized in such scams. Athena currently operates 800 bitcoin ATMs across Texas, accounting for 22% of their global inventory. Despite repeated attempts to contact the company for additional information, no representative from Athena agreed to speak on the matter. However, Anthony Durant of Athena’s customer service team previously stated that customers should report any suspicious transactions to law enforcement and follow proper procedures.
Instances akin to the one experienced by the Fort Worth individual are becoming increasingly common across various locations nationwide. In Minersville, PA, two residents fell victim to a scam involving a total loss of $34,000. Following this incident, local law enforcement took action by restricting access to the compromised machine using evidence tape. Similarly, in Boynton Beach, FL, a woman posing as a sheriff’s deputy manipulated another woman into depositing $8,000 into a bitcoin ATM. These occurrences serve as a stern reminder of the prevalence of financial scams targeting unsuspecting individuals through bitcoin ATMs.
Legally, the federal government has taken minimal action in regulating these machines effectively. Seven Democratic U.S. senators recently penned a letter to Athena and nine other companies, urging them to enhance measures against financial fraud targeting elderly Americans. While certain cities such as Stillwater, MN, have implemented bans on bitcoin ATMs, others like Texas have yet to establish comprehensive regulations in this regard.
Proposed bills in the Texas Legislature, such as House Bill 2798 and Senate Bill 1705, aimed to introduce various consumer protections, including transaction warnings, receipt issuance, and daily transaction limits. However, both bills failed to pass in the most recent legislative session. Despite the criticisms directed towards these ATMs, Tarrant County Assistant District Attorney Nathan Martin emphasized that the issue lies not in cryptocurrency itself but rather in the exploitative ease with which scammers manipulate vulnerable individuals to part with their money.
In conclusion, the prevalence of bitcoin ATM-related scams underscores the pressing need for enhanced regulation and consumer protections within the industry. Individuals are advised to remain vigilant, avoid unsolicited financial offers, and report any suspicious activities promptly. By implementing best practices and verifying the legitimacy of financial transactions, consumers can safeguard themselves against falling victim to scams facilitated through bitcoin ATMs.
