Are you a bitcoin buyer? Some bitcoin and cryptocurrency companies may be charging its consumers with extensive fees on its crypto when using Bitcoin ATMs across the country. If you have purchased bitcoin at a bitcoin ATM, or BTM, you may have been deceived and misled about the value of your crypto! Join our investigation today!

Bitcoin Teller Machines Inflate Prices

Bitcoin Automated Teller Machines, better known as BTMs, have found their way into many convenient stores, gas stations, and similar locations. Consumers can walk up to a physical kiosk and purchase bitcoin with cash or debit card funds.

Customers, much like a USD ATM, have crypto accounts or wallets where these virtual funds can be stored and added to after purchasing from a BTM, they even follow the same core regulatory obligations that ATMs usually follow. And similar to ATMs, the BTM can add on additional fees when making a transaction. Except BTM fees may be much more than your regular ATM fees.

 When buying Crypto from a traditional crypto blockchain, users can usually expect a fee between 0.24% to 3% for bitcoin transactions. BTM, however, charges exorbitant fees of up to 21.9% without explicitly identifying the fees for customers. Some crypto companies running these BTMs may not or may not clearly disclose these fees to customers before finalizing the transaction, severely reducing the actual value of the customers’ purchase.

BTM Investigation

Shub Johns & Holbrook LLP launches an investigation into cryptocurrency companies and bitcoin sellers operating BTMs for allegations that these Bitcoin ATMs deceive consumers into thinking that the value of the crypto they purchase is worth more than it actually is.

BTMs potentially conceal fee practices by promoting a total purchase fee that include the crypto cost plus network fees plus an added “flat fee.” But in the process of clicking through various attestation screens and Terms disclaimers, consumers may not notice that fees may be based on the price you spend, rather than the flat fee that the BTMs display.

Crypto consumers may not be aware that the money they spend at a BTM may not directly translate to the value of the bitcoin they receive, potentially reducing a quarter of the value spent.

If you purchased bitcoin at one of these BTMs are but were unaware of this alleged practice, you may be eligible for compensation or recourse. Fill out the attached form to join our investigation today.

The accomplished attorneys at Shub Johns & Holbrook LLP have decades of experience in the class action and consumer protection realm, litigating and leading dozens of cases, and are dedicated assisting consumers take on industry giants, deceptive businesses, and corporations alike. Email us at [email protected] or call our office at (610) 477-8380.