Bitcoin ATM regulatory risks: Athena Bitcoin litigation exposes compliance blind spots

The lawsuit filed by the Washington, D.C. Attorney General against Athena Bitcoin, a large Bitcoin ATM operator, exposed systemic compliance loopholes in the company. 93% of its transactions in Washington, D.C. are related to fraud, and victims lose an average of $8,000 per transaction. The company is suspected of hiding 13% to 26% of fees and failing to revoke fraudulent transactions, prompting a wider scrutiny by regulators and potentially triggering industry reforms.