EddieJayonCrypto
22 May 25
The Iowa Supreme Court ruled that money paid into a Bitcoin Depot ATM during two separate scams must be returned to Bitcoin Depot, not the victims, reversing a lower court decision. The court found that victims had entered contracts with Bitcoin Depot, which included warnings about scams and require...
The Iowa Supreme Court ruled that funds paid into Bitcoin Depot ATMs during two separate scams must be returned to Bitcoin Depot, not to the victims, reversing a previous lower court decision.The court determined that victims entered contracts with Bitcoin Depot, which included warnings about scams and required users to certify wallet ownership before completing transactions.The court rejected claims of duress, finding that Bitcoin Depot had no knowledge of the victims being coerced, and therefore is not liable for all unauthorized or improper transactions.Bitcoin Depot views the ruling as a reaffirmation of due process and highlights the important role compliant cryptocurrency operators play in fraud prevention.Separately, Iowa’s Attorney General sued Bitcoin Depot and CoinFlip, alleging widespread scams leading to losses of approximately $20.4 million by Iowa residents.The Attorney General’s office claims that scams account for over 98% of Bitcoin Depot ATM transactions since October 2023, that the companies charge fees around 21-23%, and that Bitcoin Depot misleads customers regarding its refund policies.Bitcoin Depot defends its practices by citing multiple security measures, including identity verification, transaction monitoring, live support, and automated scam warnings.The company also emphasizes its cooperation with law enforcement, employing a dedicated liaison team that assists in tracing transactions, recovering stolen funds, and supporting investigations nationwide.This legal conflict spotlights the challenges faced by cryptocurrency ATM operators balancing user security, fraud prevention, and regulatory compliance in an evolving financial landscape.