Iowa Attorney General Brenna Bird has filed lawsuits against Bitcoin Depot and CoinFlip, the two largest cryptocurrency ATM operators in the state. This action comes after an investigation revealed that many Iowans were scammed out of millions of dollars using these kiosks.
The investigation began in October 2023, marking a significant step as it was the first of its kind focusing on cryptocurrency ATMs. The Attorney General’s office subpoenaed 14 companies, seeking information about Iowans who had used their machines. They reached out to these individuals through phone calls and emails. The findings were alarming: over a three-year period, hundreds of Iowans sent more than $20 million through Bitcoin Depot and CoinFlip ATMs, with many of the victims being seniors over the age of 60.
Attorney General Bird expressed her outrage, stating that scammers are targeting vulnerable individuals, even using obituaries to find their next victims. She noted that these con artists often convince older women they need help and direct them to crypto ATMs, where the operators profit from the transactions. Bitcoin Depot reportedly takes a 23% cut of the money sent through its machines, while CoinFlip claims a 21% fee.
The lawsuits accuse both companies of profiting from these scams through hidden and excessive transaction fees. They also allege that Bitcoin Depot misleads customers about its refund policy. Bird is determined to hold these companies accountable, aiming to recover lost funds for Iowans and push for changes in how these ATMs operate.
The investigation is ongoing, and Bird’s office is committed to ensuring that no Iowan falls victim to such scams in the future.