This post was originally published on this site.
Massachusetts residents lost at least $77 million in Bitcoin ATM scams last year, and while the state legislature has yet to ban cryptocurrency kiosks or impose new statewide restrictions like Maine, the state’s attorney general is taking legal action against one major Bitcoin ATM operator.Attorney General Andrea Joy Campbell has filed a lawsuit against Bitcoin Depot Inc. and Bitcoin Depot Operating LLC, alleging the company knowingly facilitated cryptocurrency scams, overcharged customers and failed to protect Massachusetts consumers. The lawsuit claims Bitcoin Depot’s kiosks played a significant role in scams that cost Massachusetts residents more than $10 million.The lawsuit comes after several 5 Investigates reports on the Bitcoin ATM scams and the lack of action from Massachusetts lawmakers.In one story, Janice Peltz, 86, told 5 Investigates about how a scammer posing as her bank kept her on the phone for hours while she withdrew $18,000 in cash and deposited it into a Bitcoin ATM. The scam launched her younger brother into a monthslong journey to get the money back, until he finally landed an $18,000 refund from Bitcoin Depot. Most Bitcoin ATM scam victims aren’t lucky like Peltz. The Attorney General alleges Bitcoin Depot often refuses refunds — even though it collects fees of up to 30% per transaction. In some cases, only partial refunds are offered.Attorney General Campbell is seeking a court order that would restrict Bitcoin Depot from accepting large transactions unless additional anti-fraud protections are put in place and require refunds for consumers harmed by scams.“Massachusetts consumers deserve to feel safe when they handle their hard-earned money, no matter the technology involved,” Campbell said in a statement, accusing Bitcoin Depot of prioritizing profits over consumer protection.A bill that would implement daily transaction limits, refunds for fraud victims and fee caps from all crypto kiosk operators has been lingering in the legislature for nearly a year. It most recently passed the Legislature’s finance committee.Bitcoin Depot said in a statement the company strongly disagrees “with the characterization that Bitcoin Depot facilitates scams or misleads users,” using safeguards to protect consumers.”We are reviewing the Attorney General’s complaint carefully and remain committed to keeping our customers safe while providing secure access to crypto,” the company said.
Massachusetts residents lost at least $77 million in Bitcoin ATM scams last year, and while the state legislature has yet to ban cryptocurrency kiosks or impose new statewide restrictions like Maine, the state’s attorney general is taking legal action against one major Bitcoin ATM operator.
Attorney General Andrea Joy Campbell has filed a lawsuit against Bitcoin Depot Inc. and Bitcoin Depot Operating LLC, alleging the company knowingly facilitated cryptocurrency scams, overcharged customers and failed to protect Massachusetts consumers.
Advertisement
The lawsuit claims Bitcoin Depot’s kiosks played a significant role in scams that cost Massachusetts residents more than $10 million.
The lawsuit comes after several 5 Investigates reports on the Bitcoin ATM scams and the lack of action from Massachusetts lawmakers.
In one story, Janice Peltz, 86, told 5 Investigates about how a scammer posing as her bank kept her on the phone for hours while she withdrew $18,000 in cash and deposited it into a Bitcoin ATM.
The scam launched her younger brother into a monthslong journey to get the money back, until he finally landed an $18,000 refund from Bitcoin Depot.
Most Bitcoin ATM scam victims aren’t lucky like Peltz. The Attorney General alleges Bitcoin Depot often refuses refunds — even though it collects fees of up to 30% per transaction. In some cases, only partial refunds are offered.
Attorney General Campbell is seeking a court order that would restrict Bitcoin Depot from accepting large transactions unless additional anti-fraud protections are put in place and require refunds for consumers harmed by scams.
“Massachusetts consumers deserve to feel safe when they handle their hard-earned money, no matter the technology involved,” Campbell said in a statement, accusing Bitcoin Depot of prioritizing profits over consumer protection.
A bill that would implement daily transaction limits, refunds for fraud victims and fee caps from all crypto kiosk operators has been lingering in the legislature for nearly a year. It most recently passed the Legislature’s finance committee.
Bitcoin Depot said in a statement the company strongly disagrees “with the characterization that Bitcoin Depot facilitates scams or misleads users,” using safeguards to protect consumers.
“We are reviewing the Attorney General’s complaint carefully and remain committed to keeping our customers safe while providing secure access to crypto,” the company said.