Athena Bitcoin, a Miami-based company, operates three such cryptocurrency ATMs in Stillwater. Now they are encouraging the city to rescind its recently passed ordinance that prohibits these machines. The new parent company runs more than 3,500 cryptocurrency ATMs in 35 states. They’re adamant that the solution to scams involving these ATMs is not to ban them. Instead, Athena Bitcoin seeks to collaborate with the city to find a solution that respects their right to operate under Minnesota state law.
On April 14, attorney Robert Musiala appearing on behalf of Athena Bitcoin. He laid out the company’s frustrations in an open letter to City Attorney Korine Land. Musiala noted Athena Bitcoin’s ongoing effort to partner with Stillwater to reduce the scams often linked with virtual currency kiosks.
"Athena Bitcoin would like to work with the city of Stillwater to address the problem of scams involving (Virtual Currency) Kiosks. However, the Ordinance banning VC Kiosks is not the solution," - Robert Musiala, an attorney representing Athena Bitcoin
Athena Bitcoin has been an active member of the Stillwater community since at least January 1st, 2023. Their ATMs are on the BP gas station at 1750 Greeley St. S., the Amoco station at 103 Main St. N., and Haskell’s on 2225 Curve Crest Blvd. The company therefore fears that the city’s ordinance on yanking crypto ATMs would run afoul of its state law.
The tech company thinks this kind of collaborative approach is much better than a full-blown ban. Athena Bitcoin is committed to working with the city to address any concerns. Together, they can identify solutions which will protect the community and environment and respect the business’s right to operate.
Charleston City Attorney Korine Land has expressed her concerns with state laws that impede her city’s ambitions. She questions their usefulness in regulating cryptocurrency exchanges and preventing speculative scams.
“While state laws attempt to regulate the crypto currency business itself by requiring certain messaging at kiosks, scammers have found ways around the laws and continue to induce victims into feeding significant amounts of money into the kiosks,” - Korine Land, City Attorney
Musiala criticized the fees and possible profits made from these ATMs.
“Athena Bitcoin regularly works with law enforcement agencies and is genuinely committed to fighting financial crimes, especially those targeting the elderly population,” - Robert Musiala, an attorney representing Athena Bitcoin
Now the city has taken steps to ban these dangerous cryptocurrency ATMs. This important decision reflects an alarming new trend of these machines being used in scams. Athena Bitcoin doesn’t think the ban is the right approach. Instead, they push for a more collaborative approach that would serve the interests of the city as well as the company.
“Frequently, the hosting business (where the kiosk is located) also receives a percentage of this markup. When you consider the high volume of scam transactions being performed at kiosks, coupled with the excessive fees that are being charged at the kiosks, both the operator and the host are profiting from the victims.” - Robert Musiala, an attorney representing Athena Bitcoin
The city's decision to ban cryptocurrency ATMs reflects a growing concern about the potential for these machines to be used in scams. However, Athena Bitcoin believes that the ban is not the most effective solution and that a collaborative approach would be more beneficial for both the city and the company.
