Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against Bitcoin Depot, accusing the cryptocurrency kiosk operator of facilitating scams that cost residents millions. The action targets the company's role in bitcoin ATM frauds amid rising losses in the state. Campbell seeks court orders for better protections and refunds for victims.
Massachusetts saw at least $77 million in losses from bitcoin ATM scams last year, prompting Attorney General Andrea Joy Campbell to sue Bitcoin Depot Inc. and its operating arm. The lawsuit, filed recently, alleges that the company's kiosks enabled fraud by overcharging users and neglecting safeguards, contributing to over $10 million in direct scam-related damages to state residents.
This legal move follows investigative reports highlighting the issue, including the case of 86-year-old Janice Peltz. She was tricked by a scammer impersonating her bank into depositing $18,000 via a bitcoin ATM. After months of effort by her brother, Peltz secured a full refund from Bitcoin Depot, but such outcomes are rare. The company often denies refunds despite collecting fees as high as 30% per transaction, according to the suit.
Campbell's complaint demands restrictions on large transactions without enhanced anti-fraud measures and full refunds for scam victims. "Massachusetts consumers deserve to feel safe when they handle their hard-earned money, no matter the technology involved," she stated, criticizing the firm for favoring profits over protection.
Meanwhile, a proposed bill to cap fees, limit daily transactions, and mandate refunds for crypto kiosk operators has stalled in the state legislature for nearly a year. It recently advanced through the finance committee but awaits broader approval, unlike stricter rules already in place in neighboring Maine.
Bitcoin Depot rejected the allegations in a statement, asserting it employs safeguards against misuse and does not facilitate scams. The company plans to review the complaint while emphasizing its dedication to customer security and crypto access.
