In a move squarely aimed at protecting consumers, Missouri Attorney General Catherine Hanaway has kicked off an investigation into several companies operating Bitcoin ATMs throughout the state. These investigations come amid increasing reports of deceptive fee practices and fraud perpetrated against residents using these crypto kiosks.
The Attorney General's Office is set to thoroughly look into accusations that customers are being hit with hidden fees and are being actively deceived. "We have received reports of devastating new scams involving the use of Bitcoin ATMs," Hanaway stated. She underscored the urgency of the matter, advising victims of such scams to report their experiences to their office.
Serving as the crux of the investigation are five Civil Investigative Demands (CIDs) sent to cryptocurrency kiosk operators GPD Holdings LLC (Coinflip), Rockitcoin, LLC, Bitcoin Depot Operating LLC, Athena Bitcoin, Inc., and Byte Federal, Inc. These businesses are now required to disclose their consumer protection policies and answer to allegations of potentially violating Missouri's consumer protection laws.
Misleading fee structures are central to the probe, with a particular focus on how the transactions are nonrefundable and incredibly difficult to trace, which seemingly to make them an ideal tool for scammers targeting vulnerable populations. In an effort to educate and assist consumers, the Attorney General's Office is encouraging anyone harmed by these practices to file a complaint on their website.
