Iowa Attorney General Brenna Bird has filed lawsuits against CoinFlip and Bitcoin Depot, alleging that their crypto ATMs are being used for fraudulent activities. The lawsuits cite instances of scams involving romance fraud, fake police calls, and phony tech support, predominantly targeting elderly users. An investigation revealed that 93% of deposits at Athena Bitcoin ATMs were linked to scams, and all 34 contacted users reported being defrauded.
The lawsuits also criticize crypto ATM operators for charging exorbitant fees, ranging from 17.3% to 50%, and for not implementing adequate anti-fraud measures. Despite these actions, AG Bird has shown support for the crypto industry in the past by participating in lawsuits against the SEC.
Iowa AG Sues Crypto ATM Operators Over Fraud Allegations
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