Bitcoin ATMs Are Being Attacked With Hammers in the US Midwest

A group of individuals has been accused of smashing dozens of bitcoin ATMs in a bid to gain a competitive edge.

AccessTimeIconJan 12, 2017 at 10:48 a.m. UTC
Updated Aug 18, 2021 at 5:34 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

At least three people have been accused of smashing dozens of bitcoin ATMs in the the Midwestern US.

According to court documents filed in the US District Court for the North District of Illinois and obtained by CoinDesk, Andrew Konja, Alvin Konja and Odai Mabroukare are being accused of perpetrating a "scheme of intimidation and destruction" aimed to force out competing ATM operators in Detroit and Chicago.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Their goal, the lawsuit alleges, is to put other operators at a disadvantage through extortion and destruction of property.

    The plaintiff in the case – SandP Solutions, Inc, which does business as Bitcoin of America – filed suit late last month, and is being represented by attorney William P Suriano of Riverside, Illinois.

    The defendants are accused of violating the Racketeer Influenced and Corrupt Organizations (RICO) Act.

    'Significant expense'

    Among the allegations, is that those involved in the scheme attempted to extort other bitcoin ATM operators by requesting digital currency payments in return for protection. The complaint cites one bitcoin ATM operator who paid the demanded sum.

    In total, the plaintiff reports that "approximately 70 bitcoin ATMs" have been smashed, including "nearly 20" operated by Bitcoin of America.

    The complaint explains:

    "Plaintiff has had bitcoin ATM machines smashed in both the Chicago and Detroit metropolitan areas. This is most frequently done by an individual using a hammer or other object to smash the screen on a bitcoin ATM, making it unusable for a significant period of time. The screen must then be replaced at significant expense before the smashed bitcoin ATM can be used again."

    The defendants would then go on to offer to repair the broken ATMs owned by affected operators. Further, according to the complaint, the alleged scheme continues to this day.

    "This scheme began approximately nine months ago and is on-going," attorneys for the plaintiff wrote.

    Andrew Konja, according to the complaint, had run his own ATM business "which he sold or which was merged into Bitexpress", a reference to a Philadelphia-based ATM operator.

    Bitexpress did not immediately respond to a request for comment.

    A full copy of the complaint can be found below:

    Complaint (1) by CoinDesk on Scribd

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about