Crypto ATM company pays back $86k to Connecticut customers in settlement

Crypto ATM company pays back $86k to Connecticut customers in settlement

Bitcoin of America settles with the Department of Banking to refund customers who lost tens of thousands through crypto kiosks in Connecticut, amid proposed new regulations for virtual kiosks.

Bitcoin (BTC) of America has agreed to a settlement deal with the Department of Banking to refund the four customers who lost tens of thousands through the cryptocurrency kiosks. 

In a recent statement from the Banking Commissioner in Connecticut, Jorge Perez, Bitcoin (BTC) of America reached a deal with the Department of Banking. The present agreement came after plenty of customers complained of losing money in scams facilitated by the virtual currency kiosks owned by Bitcoin (BTC) of America.

According to the reports, about four users dropped victim to scams perpetrated by fraudsters using the kiosks. The fraudsters impersonated some top existing corporations and banks, luring the victims to deposit some cash into the kiosk. 

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The scammers seemingly gave clients QR codes to prove their legitimacy, assuring their money was safe. Once the victims deposit the cash, the scammers conduct a conversion transaction that sends digital currency directly to their wallets instead of the clients. 

Recent reports stated that the virtual currency kiosk operator illegally operates in Connecticut without licensing.

The four clients who dropped prey to the  challenge lost tens of thousands through these virtual currency kiosks. In recent reports, the Bitcoin (BTC) in America network agreed to pay $86K to the investors who lost funds.

Possible new regulation for virtual kiosks in Connecticut  

On the other side, the regulatory authorities have seemingly argued that the lack of proper licensing and regulation of the virtual booths is the reason for the scams. The Bitcoin (BTC) of America was indicted for criminal charges and will instantly seize operations in Connecticut.

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The Department of Banking and State Police in Connecticut likewise proposed bill HB 6752, “An Act Concerning Digital Assets.” The bill allows the Banking Commission some authority in adopting virtual currency regulations.

Furthermore, the new bill requires anyone running a virtual currency kiosk to get a money transmitter license, overseeing them efficiently. ATMs will now put clear disclosures for customers to read and agree on before using the booth. 

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The Connecticut State Police and the banking department announced an warning with guidelines for investors to avoid sliding prey to scams within the kiosks.


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