Iowa Court Rules in Favor of Bitcoin ATM Operator in Scammed Money Case

The Iowa Supreme Court ruled that money paid at the Bitcoin depot ATM as part of a separate fraud must return to the company, not the victims, the annulment of the lower judgment of the court.

AND Two fraud It happened in July 2023 and February 2024, when the appropriate victims were contacted separately by fraudsters and forced to transfer Bitcoin It is worth $ 14,000 via Bitcoin Depot ATM in Linn County.

Police seized the deposited money as part of their investigations, but failed to convey the transferred BTC.

The district court ruled that the money seized, in the total amount of $ 28,000, should be returned to the victims, which made Bitcoin depot complain to the Supreme Court of Iowa.

According to JUDGMENT OF JUSTICE DAN OxleyThe victims made a contract with Bitcoin Depot ATM, who warned the victims of potential fraud before moving the BTC purchased.

The victims determined that they owned their wallets to which they sent BTC, because this is the only way to complete the transfer using the Bitcoin Depot ATM.

However, one victim, Carrie Carlson, claimed that the contract she had concluded with the Bitcoin depot should be canceled because she was acting under the coercion.

But the Supreme Court in Iowa ruling That the company could not know that Carlson and the other victim were acting under the coercion, and Judge Oxley rejected Carlson’s arguments that the warning shown in the Bitcoin depot was proof of previous knowledge.

“Here, the fact that Bitcoin depot recognized the risks in his industry and the use of his ATMs and then warned his customers – to the point of banning the transaction, unless the user confirmed that their wallet – it was not responsible for any inappropriate transaction,” she wrote.

The court, therefore, ruled to “return the case with the instructions for the return of seized funds to Bitcoin depot”, leaving the victims out of pocket.

Bitcoin depot said Decipher That the decision supports the importance of the prescribed procedure and enhances the role that the crypto operators can play in preventing and solving fraud.

“The Bitcoin depot respects the decision of the Supreme Court in Iowa and considers it a positive step towards the clarification of the legal framework on the crypto transaction and confirming the importance of working with aligned, transparent operators such as Bitcoin Depot,” a spokesman said.

The company is separately involved in a larger legal battle in Iowa, after Sued the Brenna Bird lawyer Company and colleague ATM Coinflip Provider in February.

According to the Iowans, Iowans lost about $ 20.4 million as a result of sending funds via Bitcoin Depot and Coinflip.

The State Attorney’s Office says that Frauds make up 98.16% of the money Iowans sent via bitcoin depot Since October 2023, when she began an investigation into CRIPTO currency companies (an appropriate percentage for Coinflip is 94.92%).

Bird also claims that Bitcoin depot and Coinflip reduce 23% and 21% of all CRIPTO currency transactions sent via their ATMs, and that Bitcoin depot delusions regarding the conditions of his return policy.

“We already know that [fraudsters] target the elder iowans but now it seems that even hunting through obituary to target widows […] And Crypto ATM companies reduce profit, “Bird said.

Decipher contacted Coinflip for comment.

Bitcoin depot said Decipher That he has already implemented several layers of protection, including ID check, transaction monitoring, live support and automated fraud warnings.

“Our dedicated law for the implementation of the law, which was the former police service, cooperates closely with agencies across the country,” a spokesman said. “We regularly help investigators to use our blockchain analytics for monitoring transactions, recovery of stolen funds and helping to deal with active cases, and we will continue to support and help in the implementation of the law whenever possible.”

Edited by James RubinAnd his team will talk internally about it. So, you are very excited to love, stay up to date on how things are progressing as they make the product’s apartment. I think they have chosen a rather difficult area to build, in terms of such as automation and approach to similar algorithmic trading strategies.