Massachusetts Attorney General Sues Bitcoin Depot for Allegedly Aiding Scams

Massachusetts Attorney General Andrea Campbell said she wants to help victims of Bitcoin ATM scams get their money back.

According to a NewsCenter 5 report, Campbell filed a lawsuit against Bitcoin Depot Inc. and Bitcoin Depot Operating LLC. Campbell alleges the company knowingly promoted cryptocurrency scams, overcharged customers, and failed to safeguard the interests of Massachusetts consumers.

"We found that more than 80% of customers had spent $10,000 or more at these kiosks," Campbell said in a statement shared with NewsCenter 5.

The state's lawsuit alleges Bitcoin Depot's kiosks played a substantial part in scams that cost Massachusetts residents more than $10 million.

"They profited, and they misled their investors in terms of the magnitude of that fraud. So it's egregious to say the least, and we're hopeful that as we proceed, that we can get folks their resources back," Campbell further stated.

Campbell is pursuing a court order that would rein in how much Bitcoin Depot accepts from large transactions unless additional anti-fraud protections are instituted and demand refunds for consumers impacted by scams.

Bitcoin Depot said in a statement to NewsCenter 5 that the company strongly disagrees "with the characterization that Bitcoin Depot facilitates scams or misleads users." 

"We are reviewing the Attorney General's complaint carefully and remain committed to keeping our customers safe while providing secure access to crypto," a company spokesperson stated.