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Bitcoin ATMs are currently trending following motion by the federal government in Missouri. This is an investigation into corporations that allegedly use it to commit fraud Crypto kiosksand cheats customers.
Missouri AG launches investigation into corporations using Bitcoin ATMs
In one Press releaseMissouri Attorney General Catherine Hanaway announced that her office had launched a nationwide investigation into corporations that did this Bitcoin ATM operations. She explained that this investigation stems from nationwide concerns about fraudulent fee structures and malicious actors using them to defraud customers.
AG Hanaway said she had reports of “devastating” recent scams These are Bitcoin ATMs which might be preying on Missourians. She further noted that her office is investigating these allegations of hidden fees and misleading charges on these machines and can hold bad actors accountable.
The AG gave a clue as to how these fraudulent Bitcoin ATM operators work, noting that the scammers may call and claim that one is in legal trouble and desires to pay using the ATM Crypto ATMs immediately or charges will probably be filed. Hanaway urged victims of this scam to contact her office.
As a part of the motion against these miscreants, the Attorney General's Office has already issued five Civil Investigation Demands (CIDs). Bitcoin ATM company throughout Missouri. These crypto kiosk corporations are said to have interaction in practices which will violate the state's consumer protection laws. The CIDs also require these corporations to reveal 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 corporations currently under investigation. These corporations are each said to own and operate quite a few Crypto kiosks across Missouri. These kiosks typically allow customers to transact in cryptocurrencies akin to BTC as a substitute of US dollars.
The AG's office noted that these transactions are non-refundable and difficult to trace, making them the popular method for fraudsters to make the most of vulnerable Missourians. Interestingly, BTC Depot, certainly one of the businesses under investigation, recently reached a settlement in Maine over crypto ATM fraud. According to at least one ABC News reportThe crypto kiosk provider agreed to pay $1.9 million to the state as a part of a settlement to compensate fraud victims.
The rise in Bitcoin ATM fraud has led states like Arizona to enact recent laws to crack down on them. The state had reported that residents lost about $177 million attributable to schemes related to crypto ATMs. The The FBI has also warned in regards to the scam and revealed that Americans lost over $330 million to those crypto ATM scams last 12 months. This represents a big increase from the $250 million in losses recorded in 2024.
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