Submission + - Crypto ATMs Are Largely For Crime (cnn.com) 1
atrimtab writes: Cryptocurrency ATMs located in gas stations and convenience stores across the U.S. are increasingly associated with fraud, leaving victims with little recourse.
These machines, while advertising low service fees, often charge exorbitant transaction costs exceeding 20% by inflating the prices of current Crypto coins being bought by customers.
Victims of scams facilitated through these ATMs face challenges in recovering their funds, as Crypto ATM companies are often unwilling to reimburse losses. Law enforcement attempts to seize funds from these machines have been met with legal action from the companies, further hindering victim recovery.
Some industry insiders suggest the profitability of these Crypto ATM companies relies on illegal activity, and efforts are underway to influence state legislation, potentially making it even more difficult for victims to reclaim their money.
These machines, while advertising low service fees, often charge exorbitant transaction costs exceeding 20% by inflating the prices of current Crypto coins being bought by customers.
Victims of scams facilitated through these ATMs face challenges in recovering their funds, as Crypto ATM companies are often unwilling to reimburse losses. Law enforcement attempts to seize funds from these machines have been met with legal action from the companies, further hindering victim recovery.
Some industry insiders suggest the profitability of these Crypto ATM companies relies on illegal activity, and efforts are underway to influence state legislation, potentially making it even more difficult for victims to reclaim their money.
1) O RLY? 2) what crimes? (Score:1)
I'm not surprised that people use crypto-currencies for criminal acts, just as I'm not surprised they use US Federal Reserve Notes for the same.
As for profiting exhorbitantly by inflating the exchange rate, that sounds like the free market in action to me. Back in the day when crossing the border meant changing out your paper money, you saw the same thing with money-changers near border crossings - customers were willing to pay a less favorable rate for the convenience of not having to go to a bank.