The Bitcoin ATMs are trending at the moment, following a government action in Missouri. This involves an investigation into companies allegedly operating scams using these crypto kiosks, defrauding customers in the process.
Missouri AG Launches Investigation Into Companies Using Bitcoin ATMs
In a press release, Missouri Attorney General Catherine Hanaway announced that her office had launched a statewide investigation into companies that were operating Bitcoin ATMs. She stated that this investigation was due to national concerns of deceptive fee structures and bad actors using them to defraud customers.
The AG Hanaway said they had received reports of “devastating” new scams involving Bitcoin ATMs that prey on Missourians. She further remarked that her office is investigating these allegations regarding hidden fees and deceptive charges on these machines and will hold bad actors accountable.
The AG gave a hint into how these scam Bitcoin ATM operators work, noting that the scammers might call claiming that one is in legal trouble and must pay using the crypto ATMs immediately or face charges. Hanaway urged those who have been victims of this fraud to reach out to her office.
As part of the action against these bad actors, the Attorney General’s office has already issued five Civil Investigation Demands (CIDs) to Bitcoin ATM companies across Missouri. These crypto kiosk companies are said to be engaging in practices that may be in violation of the state’s consumer protection laws. The CIDs also require these companies to disclose anti-fraud policies and procedures.
Companies Currently Under Investigation
The Missouri AG office listed GPD Holdings, Rockitcoin, Bitcoin Depot, Athena Bitcoin, and Byte Federal as Bitcoin ATM companies currently under investigation. These businesses are said to each own and operate numerous crypto kiosks located across Missouri. These kiosks typically allow customers to transact in crypto, such as BTC, rather than U.S. dollars.
The AG’s office noted that these transactions are nonrefundable and difficult to trace, making them the 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 an ABC News report, the crypto kiosk vendor agreed to pay $1.9 million to the state as part of a settlement to compensate victims of fraud.
The rise of Bitcoin ATM scams has led states such as Arizona to enact new laws to crack down on them. The state had reported that residents lost about $177 million to schemes tied to crypto ATMs. The FBI has also warned about the scam, revealing that Americans lost over $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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