DC Sues Athena Bitcoin Over Hidden Crypto ATM Charges: What You Need to Know

Washington D.C. slaps Athena Bitcoin with lawsuit over undisclosed crypto ATM fees—regulators claim customers got blindsided by extra charges.

Hidden Costs Exposed

District attorneys allege the company buried fee structures deep in transaction details—some users reported paying up to 20% above spot prices without clear warning.

Regulatory Crackdown Intensifies

This case joins growing scrutiny on crypto ATM operators—regulators argue transparency remains non-negotiable despite crypto's 'wild west' reputation.

Consumer Protection Push

D.C. demands full refunds plus penalties—proving once again that when traditional finance gets disrupted, old-school regulation always catches up.

Global Crackdown on Crypto ATM Fraud

The lawsuit highlights Athena’s alleged failure to address fraud, describing its oversight as ineffective and enabling an unchecked pipeline for illicit transactions. This action comes amid a broader crackdown on crypto ATM fraud. The FBI has reported nearly 11,000 crypto ATM complaints in 2024, resulting in over $246 million in losses. At least 13 states have imposed transaction limits to curb such fraud. 

Athena bitcoin operates 13% of the 26,850 crypto ATMs in the U.S., according to CoinATMRadar. Schwalb’s office also urged crypto ATM users not to send funds to unverified contacts and to verify requests through official channels to avoid scams.

Further, different countries are also enforcing strict rules on crypto ATMs. On July 9, New Zealand announced that the country WOULD ban crypto ATMs under anti-money laundering reforms. Additionally, on June 26, 2025, Australian police encountered scams involving crypto ATMs. Prior to that, on June 3, Australia’s financial watchdog, AUSTRAC, announced that it would implement new rules for crypto ATM operators.

Also Read: U.S. Treasury Sanctions 19 Entities Over Crypto Scams