On September 8, the District of Columbia through its Office of the Attorney General filed a complaint alleging violations of the district’s Consumer Protection Procedures Act, as well as the Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act, against an operator of bitcoin automated teller machines (BTM) in the Superior Court of the District of Columbia. The attorney general claimed the operator failed to disclose “excessive” transaction fees and did not protect consumers from scams, which the attorney general alleged targeted elderly residents throughout the district. According to the complaint, the operator conducted business without the required money transmission license and imposed fees as high as 26 percent on transactions, with 93 percent of deposits during the first five months of operation allegedly linked to “outright fraud.”

The attorney general accused the BTM operator of engaging in unfair and deceptive trade practices by failing to adequately disclose fees, providing “unconscionable” contract provisions, denying victims the ability to recover stolen funds, and neglecting to use consumer protection measures. The complaint sought injunctive relief, restitution, damages, civil penalties, halting the operator’s business practices, requiring full fee disclosures, preventing fraudulent activity, and implementing a proper refund process for victims.

The complaint detailed how the operator’s BTMs were used to facilitate fraudulent schemes, often exploiting elderly residents who were directed by scammers to deposit large sums of cash. Allegedly, the median age of victims was 71, and the median loss per transaction reached $8,000. Despite being aware of frequent scams — often self-reported by victims — the operator allegedly provided no meaningful recourse for victims to recover their funds, instead retaining substantial fees and enforcing a no-refunds policy.