Bitcoinย (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.ย
In a recent statement from the Banking Commissioner in Connecticut, Jorge Perez, Bitcoinย (BTC) of America reached a deal with the Department of Banking. Theย present agreement came after plentyย of customers complained of losingย money in scams facilitated by the virtual currency kiosks owned by Bitcoinย (BTC) of America.
Accordingย 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.ย
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 digitalย currency directly to their wallets instead of the clients.ย
Recent reports statedย that the virtual currency kiosk operator illegally operates in Connecticut without licensing.
The four clients who dropped prey to theย challenge lost tens of thousands through these virtual currency kiosks. In recent reports, the Bitcoinย (BTC) in America network agreed to pay $86K to the investors who lost funds.
Possible new regulation for virtual kiosks in Connecticutย ย
On the otherย side, the regulatoryย authorities have seemingly arguedย that the lack of proper licensing and regulation of the virtual booths is the reason for the scams. The Bitcoinย (BTC) of America was indicted for criminal charges and will instantly seize operations in Connecticut.
The Department of Banking and State Police in Connecticut likewise proposed bill HB 6752, โAn Act Concerning Digital Assets.โ 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.ย
The Connecticut State Police and the banking department announced an warning with guidelines for investors to avoid sliding prey to scams within the kiosks.
