Crypto ATM Provider Settles with CT Banking for $86K Refund to Customers

• Bitcoin of America has reached a settlement with the Connecticut Department of Banking to refund four customers who lost tens of thousands through crypto kiosks.
• The victims were scammed by fraudsters impersonating existing companies and banks, luring them to deposit cash into the kiosk.
• The regulators highlighted that Bitcoin of America failed to obtain a license as a money transmitter to operate Bitcoin ATM kiosks in the state.

Bitcoin of America Settles with Connecticut Banking

Bitcoin of America has agreed to settle with the Department of Banking in Connecticut to reimburse four customers who lost tens of thousands through crypto kiosks. The settlement was made after multiple complaints from users regarding scams facilitated by Bitcoin of America’s virtual currency kiosks.

Victims Scammed By Fraudsters

The scammers involved posed as trusted companies and banks, prompting the victims to make deposits into the kiosk for conversion transactions which sent cryptocurrency directly into their wallets instead of those belonging to the clients.

Bitcoin Of America Fails To Obtain License In State

It was revealed that Bitcoin of America had been operating illegally without obtaining a license as a money transmitter in order to run its virtual currency ATMs in Connecticut. As such, they have been indicted for criminal charges and will cease operations within the state immediately.

Proposed Bill For Digital Assets Regulation

The Department of Banking and State Police proposed bill HB 6752, “An Act Concerning Digital Assets” which gives authority for adoption on virtual currency regulations and requires anyone running an ATM or wallet in Connecticut to acquire licensing accordingly.

Settlement Agreement Reached For $86K Refund

Based on reports, Bitcoin in America network agreed to pay $86K back to investors who lost funds through these virtual currency kiosks. This agreement came after several customers complained about losing money due to scams facilitated by these ATMs operated by Bitcoin Of America.

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