AML Sues Athena Bitcoin Over Stolen Code in Crypto ATM War

AML Software Inc. has filed a federal lawsuit against Bitcoin ATM operator Athena Bitcoin Inc., alleging the company orchestrated a scheme to steal its copyrighted source code and misappropriate trade secrets. The 16-page complaint, filed in the U.S. District Court for the Southern District of Florida, claims Athena engaged in copyright infringement and other unlawful acts to gain control of AML Software’s proprietary code, which powers the functionality of Bitcoin ATMs. The lawsuit further accuses Athena of collaborating with Jordan Mirch and entities linked to Taproot Acquisition Enterprises to transfer AML’s code and 2,800 ATMsAML Software Sues Athena Bitcoin for Source Code Theft - Phemex^[1].

The dispute traces back to SandP Solutions, a company that operated Bitcoin ATMs but was restricted from doing so in Ohio. Mirch, described as the “motivating force” behind the alleged scheme, allegedly acquired SandP’s ATMs through fraudulent means and later sought to obtain AML Software’s code. Despite a failed attempt to purchase the code outright, Mirch allegedly hired an AML developer as a consultant under the guise of writing new code, while the individual was tasked with “wrongfully acquiring” AML’s source codeAML Software Sues Athena Bitcoin for Source Code Theft - Phemex^[1]. The complaint asserts that AML never authorized the transfer of its intellectual property, which was later incorporated into Athena’s operations.

A settlement agreement in August 2025 reportedly allowed Athena to gain immediate ownership of the ATMs and source code while terminating a revenue-sharing arrangement with Taproot and its affiliates. The settlement, however, does not resolve the legal claims. Athena’s stock price has been volatile, rising 5% to $0.0173 on Monday but declining 84% year-to-dateAML Software Sues Athena Bitcoin for Source Code Theft - Phemex^[1].

A separate lawsuit filed in Washington, D.C., by Attorney General Brian L. Schwalb accuses Athena of profiting from scams targeting elderly users. The case alleges the company imposed hidden fees of up to 26% on unsuspecting customers, with some victims unable to recover funds despite law enforcement interventionAML Software Sues Athena Bitcoin for Source Code Theft - Phemex^[1].

The legal challenges highlight Athena’s contentious business practices. AML Software’s lawsuit underscores the competitive landscape of the Bitcoin ATM industry, where proprietary technology and machine networks are critical assets. The company’s code, described as the “guts” of the ATMs, is central to its operationsAML Software Sues Athena Bitcoin for Source Code Theft - Phemex^[1]. Meanwhile, the D.C. case raises broader concerns about consumer protections in the cryptocurrency sector, particularly for vulnerable populations.

Analysts note that the outcomes of these lawsuits could influence Athena’s market position and regulatory scrutiny. The company operates 3,600 Bitcoin ATMs nationwide, but its stock performance and legal troubles may deter investor confidence. The cases also reflect growing regulatory interest in cryptocurrency operators, as lawmakers and attorneys general increasingly focus on market integrity and consumer safeguardsAML Software Sues Athena Bitcoin for Source Code Theft - Phemex^[1].