The US state of Maine has reached a settlement with Bitcoin ATM operator Bitcoin Depot. Residents who fell victim to scams via these machines will receive a combined refund of $1.9 million. Although the fraud was committed by third parties, the state holds the company responsible for inadequate consumer protection.
Consumers scammed via crypto ATMs
Dozens of people have been tricked into transferring money to scammers through Bitcoin ATMs, according to Maine authorities. These machines, which convert cash into Bitcoin (BTC), are increasingly abused by criminals due to their fast and irreversible transactions.
The settlement should not only provide compensation, but also prevent future abuses. Bitcoin Depot must now strictly adhere to Maine consumer law and will have additional transparency and compliance obligations.
New legislation must combat crypto fraud
Maine introduced strict laws in recent years to protect citizens from crypto fraud. In 2024, the Money Transmission Modernization Act went into effect. A year later, emergency legislation aimed at crypto ATMs followed, with restrictions on daily limits, transaction fees and exchange rates.
The state thus indicates that companies that offer crypto are also responsible for the safety of their users – even if the fraud takes place outside their platform.
Governor: ‘Be alert to scams’
Governor Janet Mills calls the settlement an important signal. “Victims deserve their money back, but vigilance remains crucial,” she says. She calls on residents to talk to family and friends about the dangers of scams and how to recognize them.
The Consumer Credit Protection Bureau also underlines the importance of better technical protection. Crypto companies must ensure that customers maintain control over their digital wallets and cannot simply transfer money to unknown parties.
Crypto companies under increased supervision
The case against Bitcoin Depot makes it clear that regulators will take a stricter approach to crypto companies. Even when fraud is not directly their fault, they are held responsible for the lack of precautions.
With this settlement, Maine shows that the time for non-commitment is over. Consumer protection also applies in the world of crypto.
Source: https://newsbit.nl/maine-verplicht-bitcoin-depot-tot-terugbetaling-van-19-miljoen-dollar-na-cryptofraude/
