Key Takeaways
Why is crypto raising concerns in the UK?
Right-wing movements are increasingly using crypto, and anonymous transactions could allow foreign or criminal influence in politics.
What happened with Athena in El Salvador?
Athena installed Chivo-branded ATMs, but app flaws caused 400,000 fraudulent accounts to receive government stipend.
The cryptocurrency sector is grabbing the headlines yet again. Not just for price surges and growing adoption, but for other reasons too.
In the United Kingdom, for instance, news media outlets like ‘The Observer’ are sounding alarms after reports about Elon Musk speaking at a Whitehall event surfaced last week. The event in question was largely sponsored by crypto firms.
Analysts believe right-wing movements in the country are increasingly being drawn to decentralized digital currencies. As expected, this has sparked fresh debates about the social and political implications of the crypto boom.
How is Athena to be blamed?
Athena Bitcoin Global, a key sponsor of the Whitehall event, is facing serious allegations in the United States.
The company, which operates Bitcoin [BTC] ATMs, was accused by DC Attorney General Brian Schwalb of profiting from scams targeting elderly victims.
According to the lawsuit, 93% of deposits in the district during the first five months were linked to fraud, with one senior reportedly losing $98,000 over three days.
The average age of the victims was 71, highlighting the scale and severity of the alleged exploitation.
The lawsuit added,
“Not only has Athena done little to nothing to prevent this fraud, but it has instead pocketed hundreds of thousands of dollars in undisclosed fees on the backs of scam victims and adopted policies to prevent these victims from recovering any of their losses.”
Hence, authorities have cautioned that cryptocurrencies could threaten British democracy by allowing foreign actors to secretly fund political groups.
According to Tom Keatinge, Director at the Royal United Services Institute’s Centre for Finance and Security, while most UK citizens see crypto as niche, it has become mainstream within far-right circles. This is a community that has been steadily growing over the past few years.
“Historically, there’s been one form of money. It’s been issued by the central bank, and that’s been controlled by the government. That isn’t the case any more.”
El Salvador raised a similar red flag
Athena Bitcoin Global has also faced scrutiny in El Salvador.
In El Salvador, it charged millions to install Chivo-branded Bitcoin ATMs despite low adoption. Also, flaws in the ATM app reportedly led to 400,000 fraudulent accounts receiving government stipends, costing taxpayers $12–24 million.
For his part, Athena CEO Matias Goldenhörn defended the company’s sponsorship of a recent London rally. He called Bitcoin “the free speech of money,” while criticizing “anti-free speech tyranny.”
Besides Athena, other crypto sponsors included Fomo, a crypto coin, and V-Social, a social network offering crypto rewards. Advance UK, led by former Reform UK co-deputy leader Ben Habib, also backed the event.
Outside of these aforementioned concerns, the UK appears to be pivoting on crypto. In doing so, it might be aligning more closely with the U.S to streamline regulations, support stablecoins, and foster innovation.
If succesful, this collaboration could boost institutional confidence, drive adoption, and reinforce the UK’s role in global digital finance.
However, tensions remain, especially as the crypto community pushes back against measures like the Bank of England’s proposed stablecoin caps. This highlights the delicate balance between oversight and innovation.
