• Bitcoin of America has agreed to a settlement with the Department of Banking in Connecticut to refund customers who lost money through their crypto kiosks.
• The claimants reported that fraudsters used the kiosks to impersonate companies and banks, luring customers to deposit funds that were then converted into cryptocurrency and sent directly to the scammer’s wallet.
• The agreement also follows the introduction of HB 6752, which gives the Banking Commission authority over virtual currency regulations.
Bitcoin of America Settles With CT Dept. Of Banking
Bitcoin of America has reached a settlement agreement with the Connecticut Department of Banking, agreeing to refund four customers who lost tens of thousands due to scams facilitated by their virtual currency kiosks.
Fraudsters Impersonating Companies
The claimants reported that fraudsters used the kiosks to impersonate companies and banks, luring customers to deposit funds that were then converted into cryptocurrency and sent directly to the scammer’s wallet. Bitcoin of America was found guilty for criminal charges and will cease operations in Connecticut as a result.
HB 6752 Regulation Bill
The Department of Banking and State Police in Connecticut proposed bill HB 6752, “An Act Concerning Digital Assets” which would give them authority over virtual currency regulations if passed. This bill requires anyone running a virtual currency kiosk or exchange service to obtain appropriate licensing from regulators before operating in Connecticut.
Settlement Refunding $86K For Customers
As part of this settlement agreement, Bitcoin of America agreed to pay out $86K for those affected by these scams facilitated by their kiosks.
New Regulations For Virtual Kiosks In CT
In order to protect consumers from being scammed again, state authorities are pushing for new regulations on digital assets including virtual currency kiosks operating in Connecticut.