What happened with Rockitcoin in the scam incident?

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What happened with Rockitcoin in the scam incident?

Hi everyone, Rockitcoin ATMs are a major scam.

When I found out there was a Bitcoin ATM in my town, I decided to give it a try. I knew there might be issues, but I didn’t expect it to be this bad. I used a $20 bill at the Rockitcoin machine, which immediately informed me of a $1 fee, seems reasonable since they need to make a profit.

When I checked my balance at home, it showed $15. I’m not a math expert, but that’s about a 25% fee. According to their website, the fee should be 6%. I contacted support, and they told me there’s an additional 18% fee on top of the $1 charge.

Maybe I’m just now discovering how big of a scam Bitcoin ATMs can be, but I was still shocked despite expecting some sort of scam. Imagine if someone like grandma put $300 of Timmy’s Christmas money into one of these ATMs, thinking she was buying crypto for him.

Sorry for the rant.

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Those fees are incredibly high.

Did you also have to go through KYC (Know Your Customer) before receiving the Bitcoin? I always thought these ATMs would let you pay with cash and then give you a slip to redeem your Bitcoin on their website. Once on the site, you would need to enter all your details. Is this how it works?

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I had the option to either print out my private key or scan my own Bitcoin wallet. I forgot to bring a QR code for my actual wallet, so I ended up sending it through their app instead. I lost about 20 cents in the process, but it is what it is.
Regarding KYC, they asked for my phone number right away but didn’t request anything else.

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Did they verify the phone number with an SMS code?