Bitcoin ATMs are currently trending, following government action in Missouri. This includes investigations into alleged fraudulent companies using these crypto storesdefrauding customers in the process.
Missouri AG Launches Investigation into Companies Using Bitcoin ATMs
In a Press releaseMissouri Attorney General Catherine Hanaway announced that her office has launched a statewide investigation into the companies involved. operating Bitcoin ATMs. He pointed out that the investigation was prompted by national concerns about fraudulent agencies and criminals who use them to defraud customers.
AG Hanaway said they had received reports of “harassment” new scams including Bitcoin ATMs that prey on the people of Missouri. He further said that his office is investigating these allegations regarding hidden funds and fraudulent charges in these machines and will hold the perpetrators accountable.
The AG gave an indication of how these Bitcoin ATM scam operators operate, noting that scammers may call saying that a person is in legal trouble and must pay using crypto ATMs immediately or face charges. Hanaway urged those who have become victims of this scam to reach out to his office.
As part of the action against these perpetrators, the Attorney General’s office has issued five Civil Investigation Demands (CIDs) to Bitcoin ATM Companies across the Missouri. These crypto kiosk companies are said to be engaging in practices that may violate government consumer protection laws. CIDs also require these companies to disclose anti-fraud policies and procedures.
Companies Currently Under Investigation
The Missouri AG’s office has listed GPD Holdings, Rockitcoin, Bitcoin Depot, Athena Bitcoin, and Byte Federal as Bitcoin ATM companies currently under investigation. These businesses are said to be owned and operated by many crypto kiosks are located across Missouri. These kiosks usually allow customers to make payments in crypto, such as BTC, instead of US dollars.
The AG’s office noted that these transactions are irreversible and difficult to trace, making them a preferred method for scammers to prey on vulnerable Missourians. Interestingly, BTC Depot, one of the companies under investigation, recently reached a settlement in Maine over crypto ATM scams. According to the ABC News reportThe crypto kiosk seller agreed to pay $1.9 million to the government as part of an agreement to pay fraud victims.
The rise of Bitcoin ATM scams has led states like Arizona to enact new laws to crack down on them. The state reported that citizens lost about $ 177 million in programs tied to crypto ATMs. I The FBI also warned about the scam, revealing that Americans lost more than $330 million to these crypto ATM scams last year. This represents a significant increase from the $250 million in losses recorded in 2024.
Featured image from Getty Images, chart from Tradingview.com
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