Athena Bitcoin Faces Lawsuit Over Alleged Theft of Source Code

Athena Bitcoin finds itself in legal hot water as accusations fly over stolen intellectual property.

The Core Allegation

Sources claim proprietary trading algorithms were lifted directly from Athena's systems. The lawsuit alleges systematic code theft spanning multiple cryptocurrency trading platforms.

Industry Implications

This case highlights the cutthroat nature of crypto development—where a few lines of code can mean millions in profits. Trading firms guard their algorithms like Fort Knox, for good reason.

Legal Fallout

The plaintiff seeks damages that could reach nine figures if allegations prove true. Legal experts predict this could set precedent for future crypto IP disputes.

Because nothing says 'financial innovation' like old-fashioned corporate espionage—just with blockchain flavoring.

TLDR

• AML Software has filed a lawsuit against Athena Bitcoin, accusing the company of attempting to steal its proprietary source code.
• The lawsuit alleges that Athena Bitcoin engaged in copyright infringement and the misappropriation of trade secrets.
• The complaint names Jordan Mirch as the main individual behind the fraudulent actions involving the acquisition of Bitcoin ATMs.
• Athena Bitcoin allegedly tried to acquire AML Software’s source code through a side deal with Taproot Acquisition Enterprises.
• Athena Bitcoin is also facing a separate lawsuit in Washington, D.C. related to scams targeting elderly customers.

AML Software, based in Illinois, has filed a lawsuit against Athena Bitcoin, accusing the ATM operator of attempting to steal its source code. According to the complaint, Athena engaged in several illegal activities, including copyright infringement and the misappropriation of trade secrets. AML Software, which develops the code powering Bitcoin ATMs, claims Athena conspired with other parties to acquire its proprietary software wrongfully.

The complaint details how Athena bitcoin allegedly attempted to take over 3,000 Bitcoin ATMs starting in 2023. AML Software asserts that its code powers many of these machines, enabling customers to exchange cash for cryptocurrency. The lawsuit claims that Athena sought to acquire the software and attempted to bypass AML’s ownership rights to achieve its goals.

AML Software further contends that Athena Bitcoin and its associates, including Jordan Mirch, were part of a broader scheme to unlawfully take control of its software. The company alleges that these actions were premeditated and aimed at taking over AML Software’s technology without authorization.

Athena Bitcoin’s Alleged Role in Misappropriating Source Code

The lawsuit claims that Athena Bitcoin, led by its CEO, was fully aware of the ownership of the software involved in the scheme. According to AML Software, Mirch, who was involved with Taproot Acquisition Enterprises, orchestrated the fraudulent transfer of Bitcoin ATMs, which were powered by AML’s code.

In its complaint, AML Software explains that Mirch had previously acquired Bitcoin ATMs from SandP Solutions through fraudulent actions. These actions are currently being litigated in Illinois. The company also alleges that Mirch sought to bypass AML Software’s control over the source code by using side deals with Athena to transfer the technology along with the ATMs.

Despite prior discussions about a potential deal between AML Software and Athena Bitcoin, the two companies could not agree on terms. As the situation progressed, Mirch allegedly hired an AML developer to work as a consultant, not to create new code but to acquire AML’s software. The complaint claims that this was a deliberate attempt to steal proprietary code without permission.

$9 Million Settlement Adds to Legal Troubles

In response to the accusations, Athena Bitcoin has become embroiled in additional legal challenges. Earlier this month, the company entered a $9 million settlement agreement that purportedly granted it immediate ownership of both the ATMs and the source code. However, this agreement also eliminated a previous revenue-sharing deal with Taproot and its affiliates.

The ongoing legal issues for Athena Bitcoin have added to its financial difficulties. Athena’s stock, which trades over the counter, has seen a dramatic 84% drop in value this year. In addition to the Illinois lawsuit, Athena Bitcoin is facing another legal challenge in Washington, D.C., over accusations that it profited from scams targeting elderly customers, charging hidden fees of up to 26%.

While the legal battles continue, Athena Bitcoin’s position remains uncertain. The company’s actions have drawn the attention of lawmakers, including Senator Cynthia Lummis, who plans to address the issue of scam-related Bitcoin ATMs through new market structure legislation.