The Iowa Supreme Court rules a woman who put money into a bitcoin ATM in what turned out to be a scam can’t get her cash back.

Carrie Carlson deposited $14,100  into a Bitcoin ATM in Cedar Rapids after a call claiming her accounts had been compromised. Carlson ignored a warning from the ATM that the bitcoin had to be deposited into a bitcoin wallet she owned and put it in another wallet.

The Linn County Sheriff’s Office seized the cash from the ATM for its investigation after Carlson notified them of the scam. The Supreme Court ruled that Carlson did not show that Bitcoin Depot had reason to know Carlson was being scammed, and the contract between Bitcoin Depot and Carlson is not voidable. It ordered that the seized cash be returned to the bitcoin company.

The Supreme Court also issued a ruling in another case it said is nearly identical to the Carlson case. Shelby Cason deposited $14,800  into a Bitcoin ATM kiosk, located inside Hawks Smoke Shop in Marion, and transferred it to a bitcoin wallet he did not own. The Supreme Court ruled that the bitcoin company should receive the cash seized from the ATM for the investigation after Cason said he was scammed.






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