Iowa Court Rules in Favor of Bitcoin ATM Operator in Scammed Money Case
The Iowa Supreme Court ruled that $28,000 seized from a Bitcoin Depot ATM must be returned to the company, not the victims of scams. The scams occurred in July 2023 and February 2024, involving victims coerced into transferring Bitcoin. A lower court had ordered the funds returned to the victims, but Bitcoin Depot appealed. Justice Dana Oxley stated that the victims entered a contract with Bitcoin Depot, which included warnings about scams. One victim claimed duress, but the court found no evidence that Bitcoin Depot was aware of any coercion. The ruling emphasizes the company's non-liability for improper transactions. Bitcoin Depot is also facing a lawsuit from Iowa's Attorney General over alleged fraud, with claims that scams account for over 98% of transactions through its ATMs. The company asserts it has implemented measures to prevent fraud and assist law enforcement.
