Athena Bitcoin has been accused of copyright infringement and trade secret appropriation by AML Software.
AML Software has filed a lawsuit against Athena Bitcoin, claiming that Athena conspired with Taproot Acquisition Enterprises and its CEO, Jordan Mirch, in a scheme to wrongfully obtain AML’s proprietary source code.
Athena Bitcoin faces lawsuit over alleged source code theft
Athena Bitcoin Global Inc., a U.S.-based Bitcoin ATM operator, has run into legal trouble with the Illinois firm AML Software.
AML Software filed a lawsuit accusing Athena Bitcoin of engaging in a scheme to steal its proprietary source code. The complaint was lodged on Tuesday in federal court and contains allegations of copyright infringement, trade secret theft, and other unlawful conduct.
AML Software claims that its code is copyrighted and was never licensed for sale to Athena despite the company’s attempt to directly purchase AML’s code.
The 16-page filing made allegations of collusion between Athena and Jordan Mirch, the CEO of Taproot Acquisition Enterprises. Mirch was implicated as the “motivating force” behind the alleged misappropriation and accused him of using fraudulent tactics to gain access to more than 3,000 ATMs still running AML’s software that Athena sought to acquire starting in 2023.
The legal case involves SandP Solutions, which is a company that once operated 2,800 Bitcoin ATMs. After regulators barred SandP from operating in Ohio, the company faced mounting financial strain. The complaint alleges that Mirch seized the opportunity, securing SandP’s ATMs through “fraudulent misrepresentations and other unlawful conduct.”
Once in possession of the machines, Mirch allegedly reached out to Athena to negotiate a transfer of both hardware and software.
The lawsuit further claims that Mirch hired an AML developer as a consultant in an effort to wrongfully obtain AML’s existing copyrighted platform.
Athena faces different customer protection lawsuit
AML’s lawsuit also references a recent $9M settlement agreement involving Athena, Taproot, and associated entities. Under the terms, Athena announced earlier this month that it was gaining “immediate ownership of ATMs and source code,” while terminating a revenue-sharing deal with Taproot.
AML, however, argues that the source code transferred under the agreement did not legally belong to Taproot or Athena, but to AML alone.
Earlier this month, Washington, D.C., Attorney General Brian L. Schwalb filed a separate lawsuit accusing Athena of exploiting elderly customers through predatory practices. Schwalb alleged Athena profited from scams, charging up to 26% in hidden fees.
Progressive Democrats have called for tougher consumer protections in the crypto sector.Senator Cynthia Lummis said Tuesday that she plans to address issues like those raised in the Athena case through forthcoming market structure legislation, co-sponsored with Senator Kirsten Gillibrand.
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Source: https://www.cryptopolitan.com/athena-bitcoin-aml-head-to-court/
