The Bitcoin ATM operator faces a legal lawsuit over alleged copyright infringement and misappropriation of trade secrets.
U.S.-based Athena Bitcoin Global Inc., specializing in cryptocurrency ATMs, is at the center of a legal dispute. Illinois-based AML Software filed a lawsuit in federal court, accusing Athena Bitcoin of orchestrating a plan to illegally take its proprietary source code.
The complaint, filed on September 23 in a 16-page document, includes allegations ranging from copyright infringement to trade secret theft. According to AML Software, the code in question is copyrighted and was never licensed for sale to Athena Bitcoin, despite the company’s direct attempts to purchase it legitimately.
The lawsuit highlights an alleged collaboration between Athena Bitcoin and Jordan Mirch, CEO of Taproot Acquisition Enterprises. The accusations claim Mirch acted as the “driving force” behind the misappropriation, using fraudulent tactics to gain access to over 3,000 ATMs still running AML’s software, machines Athena Bitcoin aimed to acquire starting in 2023.
At the center of the case is SandP Solutions, a company that operated 2,800 Bitcoin ATMs before Ohio regulators barred its operations. SandP’s precarious financial situation allegedly gave Mirch the opportunity to take control of the machines through “false and fraudulent statements and other unlawful conduct,” according to the complaint.
Once in possession of the machines, Mirch reportedly entered negotiations with Athena Bitcoin to transfer both the hardware and the software. The scheme allegedly escalated when Mirch hired an AML Software developer as a consultant in an attempt to illegitimately acquire the company’s copyrighted platform.
Athena Bitcoin’s legal troubles deepened earlier this month when the company announced it had obtained “immediate ownership of ATMs and source code” through a $9 million deal involving Taproot Acquisition Enterprises and other affiliated entities. However, AML Software disputes the legitimacy of this transfer, arguing that the source code belongs solely to AML Software, not Taproot Acquisition Enterprises or Athena Bitcoin.
Athena Bitcoin’s legal challenges extend beyond the source code dispute. Earlier this month, Washington D.C. Attorney General Brian L. Schwalb filed a separate lawsuit accusing the company of exploiting elderly customers through predatory practices. According to Schwalb, Athena Bitcoin profited from scams by charging hidden fees of up to 26%.
