Athena Bitcoin Lawsuits Mount as Texans Lose Over $57M to Scams
Two Houston-area residents have filed lawsuits against Athena Bitcoin Inc., a subsidiary of Athena Bitcoin Global, after losing tens of thousands of dollars to scams. The losses add up to nearly $57 million in Texas last year, with the FBI recording over 1,200 complaints involving cryptocurrency kiosks from Texans.
Meagan Venable, a Pearland woman, filed a lawsuit against Athena Bitcoin Inc. in the Southern District of Texas after being scammed out of $23,700. She was threatened by scammers who impersonated a sheriff's deputy and demanded 'bond money' to be deposited into Athena kiosks.
Athena Bitcoin Global operates over 800 kiosks in Texas and nearly 3,000 nationwide. The company is registered with the Department of Treasury as a 'Money Services Business,' which subjects it to stricter requirements under the Financial Crimes Enforcement Network. However, the lawsuit argues that Athena's systems approve and transmit Bitcoin to scammers' wallets without any hold or verification mechanism.
The lawsuits come as lawmakers consider whether Texas needs new rules for cryptocurrency kiosks. A bipartisan bill introduced last session aimed to create statewide regulations with stark warnings on machines, a process for investigating fraud, and a requirement for companies to return money lost to scams.