Brenna Bird sues cryptocurrency ATM companies she says scammed over $20 million from Iowans

[cigaretteman]

Iowa Attorney General Brenna Bird has filed a lawsuit against Iowa’s two largest cryptocurrency ATM operators that have cost Iowans more than $20 million, her office says.

Bitcoin Depot and CoinFlip, Iowa's two largest cryptocurrency ATM operators, were subject to a "first-of-its-kind investigation" in October 2023 for failure to protect users against scammers who were able to have millions transferred to them through cryptocurrency kiosks, a release from the attorney general's office says.

Bird's office subpoenaed 14 crypto ATM companies for a list of Iowans who had sent their money through the companies' ATMs. The office interviewed those Iowans and investigated complaints, police reports and self-reported scams, according to the release.


The investigation found hundreds of Iowans, mostly over the age of 60, had sent approximately $20,426,616 through Bitcoin Depot and CoinFlip ATMs in a less than 3-year period.

In all, $13,182,625 was sent through CoinFlip ATMs and $7,234,991 through Bitcoin Depot, the attorney general's release said.

“Con artists are evil and will stop at nothing to steal everything you have,” Bird said in the news release. “We already know that they target older Iowans, but now it seems that they even hunt through obituaries to target widows. They convince these older women that they need help, and then send their victims to crypto ATMs. And the crypto ATM companies take a cut of the profits. It’s not just wrong, it’s illegal.

 

[Moral]

I almost took a picture of one I saw in Fareway yesterday but the had it covered in a garbage bag and all taped up. I'm not shocked there would be scamming in the crypto market. I figured those machines had two purposes, scamming, and to make it appear that crypto had mainstream acceptance/normalization.

 

[seminole97]

I almost took a picture of one I saw in Fareway yesterday but the had it covered in a garbage bag and all taped up. I'm not shocked there would be scamming in the crypto market. I figured those machines had two purposes, scamming, and to make it appear that crypto had mainstream acceptance/normalization.

That happened last year for bitcoin.

Wells Fargo, Bank of America, UBS, and Morgan Stanley already include Bitcoin ETFs in some portfolios if clients ask.

There's a new hard money asset class (speaking of bitcoin, not cryptocurrency in general).
It's not going away.

 

[lucas80]

It's weird seeing Bird doing her day job. Is there a way she can frame this as a scam being run by trans illegals?

 

[HROT]

I’m shocked at the age and amount of crypto. Lol

 

[dgordo]

I almost took a picture of one I saw in Fareway yesterday but the had it covered in a garbage bag and all taped up. I'm not shocked there would be scamming in the crypto market. I figured those machines had two purposes, scamming, and to make it appear that crypto had mainstream acceptance/normalization.

I was pitched on investing in bitcoin depot before the spac transaction. It was pretty obvious to me that its only real use was money laundering, scamming people and for migrants to send money home. no one with any banking access would ever use a crypto atm.

 

[joelbc1]

Greed is a wonderful thing to witness first hand.
What was it that PT barnum said years ago about “fools” and their money”?

 

[10kHawk]

My MIL was just convinced by a kind sole helping her “dehack ” her computer to withdraw $9k and deposit in a bitcoin ATM. Old people should not use Facebook.

 

[lucas80]

I was pitched on investing in bitcoin depot before the spac transaction. It was pretty obvious to me that its only real use was money laundering, scamming people and for migrants to send money home. no one with any banking access would ever use a crypto atm.

What was it like meeting Don Jr and Eric in person?

 

[Moral]

I was pitched on investing in bitcoin depot before the spac transaction. It was pretty obvious to me that its only real use was money laundering, scamming people and for migrants to send money home. no one with any banking access would ever use a crypto atm.

You could start a withdraw from the Bitcoin ATM, go shop, come back a half an hour later and hope it is done moving around the blockchain so you can withdraw. Trump signed his crypto reserve yesterday I believe and there hasn't been a rally for bitcoin, solana, ada, or xrp. Confidence in those exchanges is very low at the moment. About 28% of people in the US are in on crypto in some variety, granted a lot of those will be dead wallets and small leftover wallets in coinbase etc, and the number is about 1.3% globally are staked in it. Every percentage increased in those numbers is money that can be swiped away from new users by old users.

I keep saying it. The US doing a crypto reserve turn the taxpayers into the bagholders while the whales and equities make out like bandits. Bitcoin has a lot in common with a ponzi scheme in that it requires recruiting people in to put money in with the hopes of getting more money while there is no real utility yet in 2025 minus what you mentioned.

Someday it will come crashing down, but it will always be around as degen gambling and ponzi scheme in some variety until it is banned.

 

[dgordo]

What was it like meeting Don Jr and Eric in person?

Sort of, the CEO was like 30 and clearly lucked into a deal that made him rich but it was obvious to me it wouldnt last.

 

[dgordo]

My MIL was just convinced by a kind sole helping her “dehack ” her computer to withdraw $9k and deposit in a bitcoin ATM. Old people should not use Facebook.

sorry to hear that, i have a lock on my in laws bank accounts that prevents any payment over $1000 without my consent or my BILs.

 

[lucas80]

sorry to hear that, i have a lock on my in laws bank accounts that prevents any payment over $1000 without my consent or my BILs.

It gets to be a fudging nightmare when you realize how vulnerable your aging relatives are, and how many people are out there wanting to steal from them.

 

[Moral]

 

[seminole97]

I keep saying it. The US doing a crypto reserve turn the taxpayers into the bagholders while the whales and equities make out like bandits.

Read the EO.

• • The United States will not sell bitcoin deposited into this Strategic Bitcoin Reserve, which will be maintained as a store of reserve assets.
  • The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies impose no incremental costs on American taxpayers.
• It also established a U.S. Digital Asset Stockpile, consisting of digital assets other than bitcoin owned by the Department of Treasury that was forfeited in criminal or civil asset forfeiture proceedings.
  • The government will not acquire additional assets for the U.S. Digital Asset Stockpile beyond those obtained through forfeiture proceedings.
  • The Secretary of the Treasury may determine strategies for responsible stewardship, including potential sales from the U.S. Digital Asset Stockpile.

Catch that distinction?
They'll sell other crypto they seize (potentially for bitcoin), but won't sell the bitcoin.
The smart people behind Trump that are guiding this understand the Venn diagram of bitcoin and cryptocurrency.

Bitcoin has a lot in common with a ponzi scheme in that it requires recruiting people in to put money in with the hopes of getting more money while there is no real utility yet in 2025 minus what you mentioned.

Ponzi is a bad comp because bitcoin is simply not a promised 'investment' like that, that is supposed to generate a return from an underlying asset.
Its utility is as a 'non-counterfietable' medium of exchange that tyrants like Trudeau can't stop you from transferring the way he can with your bank account or other financial assets.
Bitcoin can be expected to gain value relative to fiat currencies because those currencies will continue to be inflated.
Bitcoin can also be expected to gain value relative to fiat currencies as people adopt it (increasing demand) as a savings vehicle to protect themselves from governments around the world inflating their respective fiat currencies.

 

[Moral]

Read the EO.

• • The United States will not sell bitcoin deposited into this Strategic Bitcoin Reserve, which will be maintained as a store of reserve assets.
  • The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies impose no incremental costs on American taxpayers.
• It also established a U.S. Digital Asset Stockpile, consisting of digital assets other than bitcoin owned by the Department of Treasury that was forfeited in criminal or civil asset forfeiture proceedings.
  • The government will not acquire additional assets for the U.S. Digital Asset Stockpile beyond those obtained through forfeiture proceedings.
  • The Secretary of the Treasury may determine strategies for responsible stewardship, including potential sales from the U.S. Digital Asset Stockpile.

Catch that distinction?
They'll sell other crypto they seize (potentially for bitcoin), but won't sell the bitcoin.
The smart people behind Trump that are guiding this understand the Venn diagram of bitcoin and cryptocurrency.



Ponzi is a bad comp because bitcoin is simply not a promised 'investment' like that, that is supposed to generate a return from an underlying asset.
Its utility is as a 'non-counterfietable' medium of exchange that tyrants like Trudeau can't stop you from transferring the way he can with your bank account or other financial assets.
Bitcoin can be expected to gain value relative to fiat currencies because those currencies will continue to be inflated.
Bitcoin can also be expected to gain value relative to fiat currencies as people adopt it (increasing demand) as a savings vehicle to protect themselves from governments around the world inflating their respective fiat currencies.

tl;dr you know I have you on ignore and don't give a shit about your obfuscating long posts. I do see that part in bold about how the US will hodl, that doesn't change my argument at all, hell it might enforce it.

 

[Moral]

https://www.ccn.com/news/crypto/tether-keeps-minting-altcoin-starved-fresh-liquidity/

 

[Jerome Silberman]

I'm surprised Bird is allowed to attempt this. Crypto Scams seem like a pretty important part of the MAGA/oligarch vision for the future.

 

[Moral]

BREAKING: SEC halts fraud prosecution of Chinese national who sent Trump millions

In December, Popular Information reported that Chinese crypto entrepreneur Justin Sun purchased $30 million in crypto tokens from World Liberty Financial (WLF), a new venture backed by President Donald Trump and his family.

popular.info

 

[seminole97]

tl;dr you know I have you on ignore and don't give a shit about your obfuscating long posts. I do see that part in bold about how the US will hodl, that doesn't change my argument at all, hell it might enforce it.

I don't care if you have me ignore, when you post misinformation I'll post facts.
People can check for themselves who is full of shit.
You tl:dr most shit, so you have a poor understanding, and that is the basis for most of the misinformation you post.
No taxpayer money is being invested in bitcoin or cryptocurrency.
The EO centralizes the Fed's crypto holdings (obtained by seizure, not taxpayer funded purchase) and authorizes the treasury to sell crypto and make revenue neutral acquisitions of bitcoin. So if they seized Ripple from someone, the Feds can sell that for bitcoin to increase the bitcoin reserve.
It's being treated like what it has become, digital gold.
Your argument is logically and empirically flawed, but that's BAU for you.