- Banking Commissioner secures $86,000 settlement for four Connecticut consumers.
- The customers were scammed through Bitcoin of America’s unlicensed virtual kiosks.
- A bill to regulate virtual currency has been submitted.
Jorge Perez, a Banking Commissioner in the United States, has delivered justice to four consumers who fell prey to a scam by securing a settlement of $86,000 from Bitcoin of America, a virtual currency kiosk operator.
According to the official report, Bitcoin of America had been operating without the necessary license, leaving vulnerable individuals susceptible to scams and causing them to lose tens of thousands of dollars.
While the kiosks allowed consumers to purchase virtual currency using cash, it opened the door for scammers to exploit unsuspecting individuals, with four Connecticut consumers falling prey to scams in a string of incidents.
The settlement, reached through a consent order, requires Bitcoin of America to make restitution totaling $86,000 to four Connecticut consumers who fell victim to scams while using the company’s virtual currency kiosks.
While Bitcoin of America agreed to make restitution to the affected consumers, it will be winding down its operations in Connecticut following the criminal indictment.
Notably, a groundbreaking bill to regulate virtual currency and strengthen oversight of kiosk operations has been submitted. Specifically, the Department of Banking and the Connecticut State Police have jointly sponsored HB 6752, an Act Concerning Digital Assets, during a legislative session.
The proposed bill will empower the Banking Commissioner to establish regulations concerning virtual currency and other digital assets. It will require virtual currency kiosks to be licensed as money transmitters and provide the Commissioner with jurisdiction over the machines and their operators.
Additionally, the Department of Banking, in collaboration with the Connecticut State Police, the Office of the Attorney General, and the Department of Consumer Protection, has issued a consumer alert containing valuable tips to avoid falling victim to similar scams.