Bitcoin ATMs are currently trending following the Missouri state government's actions. This includes investigating companies that allegedly use them to commit fraud. cryptocurrency kioskdeceiving customers in the process.
Missouri begins investigation into companies using Bitcoin ATMs
in press releaseMissouri Attorney General Kathleen Hanaway said her office: Bitcoin ATM operation. She said the investigation was due to national concerns about deceptive fee structures and egregious practices using them to defraud customers.
AG Hannaway said he had received a “devastating” report. new scam It involves Bitcoin ATMs preying on Missourians. She further said her office is investigating allegations of hidden fees and fraudulent charges on these machines and intends to hold bad actors accountable.
The AG offered tips on how these fraudulent Bitcoin ATM operators work, noting that scammers may call you claiming they are in legal trouble and need to pay using a Bitcoin ATM. Cryptocurrency ATM Should I sue immediately or should I sue? Hannaway urged anyone who has fallen victim to this scam to contact her office.
As part of its actions against these bad actors, the Attorney General's Office has already issued five Civil Investigation Demands (CIDs). Bitcoin ATM Company Beyond Missouri. These cryptocurrency kiosk companies are said to be engaging in conduct that may violate state consumer protection laws. CID also requires these companies to disclose their anti-fraud policies and procedures.
Companies currently under investigation
The Missouri office lists GPD Holdings, LockItCoin, Bitcoin Depot, Athena Bitcoin, and Byte Federal as Bitcoin ATM companies currently under investigation. Each of these companies is said to own and operate a number of companies. Crypto kiosks located across Missouri. These kiosks typically allow customers to transact in cryptocurrencies such as BTC rather than USD.
The AG's office noted that these transactions are non-refundable and difficult to trace, making them a favorite method for scammers to prey on vulnerable Missourians. Interestingly, one of the companies investigated, BTC Depot, recently reached a settlement in Maine regarding crypto ATM fraud. According to ABC News coveragea crypto kiosk vendor agreed to pay the state $1.9 million as part of a settlement to compensate victims of the fraud.
The rise in Bitcoin ATM fraud has led states like Arizona to enact new laws to crack down on Bitcoin ATM fraud. The state reported residents lost approximately $177 million to schemes related to virtual currency ATMs. of FBI also warns Regarding this scam, it was revealed that Americans lost more than $330 million to these crypto ATM scams last year. This is a significant increase from the $250 million loss recorded in 2024.
Featured image from Getty Images, chart from Tradingview.com
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