DC Attorney General Sues Athena Bitcoin Over Alleged Hidden Fees

Brian Schwalb, Attorney General for the District of Columbia, has filed a lawsuit against Athena Bitcoin. The firm is a major operator of cryptocurrency ATMs and is being accused of charging undisclosed fees as well as knowingly enabling scam transactions. According to the complaint registered, the Athena kiosks were a hotspot for scams between May and September 2024. These were the first five months of its launch in DC.

Athena Bitcoin Sued by DC Attorney General

Attorney General Schwalb’s office alleged that an overwhelming 93% of deposits made through Athena’s machines during that period were linked to scams. Many of the victims, the filing said, were elderly or otherwise vulnerable individuals.

One DC resident reportedly lost $98,000 through a scam facilitated at an Athena ATM, while the median victim age was 71 and the median loss per transaction stood at $8,000.

The lawsuit claims Athena profited from “hundreds of thousands of dollars” in undisclosed fees, charging users up to 26% per transaction. Instead of clearly labeling them as fees, the company allegedly referred to the charges as a “Transaction Service Margin” in its Terms of Service.

By avoiding direct reference to fees, prosecutors argue Athena misled customers while enforcing a strict no-refund policy that blocked victims from recovering either their losses or the hidden costs.

“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 in a statement.

The case comes amid growing federal and state scrutiny of cryptocurrency kiosks, which have been increasingly exploited by fraudsters. The FBI reported nearly 11,000 fraud complaints tied to crypto ATMs in 2024 alone, with losses surpassing $246 million.

At least 13 states, including Arizona, Colorado, and Michigan, have responded by capping transaction limits to reduce the risks. With more than 26,850 crypto ATMs across the U.S., market leaders like Bitcoin Depot, CoinFlip, and Athena collectively account for over half of all machines.

Hidden or excessive fees are not unique to the crypto sector. Traditional financial institutions have also faced major penalties in recent years. Discover Bank was ordered to return $1.2 billion in overcharged fees in April, while Wells Fargo and Bank of America have paid multibillion-dollar settlements for improper or undisclosed charges.

Athena has yet to issue a public response to the allegations.