Bitcoin ATMs are now popular following action by the Missouri state government. This includes investigations into companies suspected of using these techniques to operate fraud. Cryptocurrency KioskThe act of deceiving customers in the process.
Missouri AG begins investigation into companies using Bitcoin ATMs
at press releaseMissouri Attorney General Catherine Hanaway announced that her office has opened statewide investigations into the following companies: Bitcoin ATM operation. She said the investigation was prompted by national concerns about deceptive fee structures and bad actors using them to defraud customers.
AG Hanaway said he had received reports that were “devastating”. new scam It has to do with Bitcoin ATMs preying on Missourians. She also said her office is investigating these claims of hidden fees and fraudulent charges for these machines and will hold bad actors accountable.
The AG gave a hint as to how these fraudulent Bitcoin ATM operators operate, noting that scammers could claim that they are in legal trouble and have to pay using: Cryptocurrency ATM Failure to do so immediately may result in prosecution. Hanaway urged people who have fallen victim to this scam to contact his office.
As part of its actions against these bad actors, the Attorney General’s Office has already issued five Civil Investigative Demands (CIDs). Bitcoin ATM Company All over Missouri. These cryptocurrency kiosk companies are reportedly engaging in practices 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 AG’s office listed GPD Holdings, Rockitcoin, Bitcoin Depot, Athena Bitcoin, and Byte Federal as Bitcoin ATM companies it is currently investigating. Each of these businesses reportedly owns and operates multiple businesses. Cryptocurrency kiosks located throughout Missouri. These kiosks typically allow customers to transact in cryptocurrencies such as BTC rather than US dollars.
The AG’s office noted that these transactions are non-refundable and difficult to track, making them a preferred method for scammers to prey on vulnerable Missourians. Interestingly, one of the companies investigated, BTC Depot, recently reached a settlement over cryptocurrency ATM fraud in Maine. According to ABC News ReportThe encryption kiosk vendor has agreed to pay $1.9 million to the state as part of a compensation settlement for fraud victims.
The rise in Bitcoin ATM fraud has led states like Arizona to enact new laws to crack down on it. The state reported that residents lost an estimated $177 million due to fraud involving cryptocurrency ATMs. that The FBI also warned It was revealed that Americans lost over $330 million to cryptocurrency 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
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
