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In a lawsuit that reads like a high-stakes cyber-heist, AML Software has accused bitcoin ATM operator Athena Bitcoin of stealing its crown jewel: the proprietary source code powering thousands of crypto machines. The case, filed Tuesday in the Southern District of Florida, alleges copyright infringement, misappropriation of trade secrets, and a calculated scheme involving both Athena and Taproot Acquisition Enterprises CEO Jordan Mirch.

According to the complaint, nearly 3,000 bitcoin ATMs originally operated by SandP Solutions LLC (S&P) carried AML’s code under license. That license traces back to 2020, when S&P created the code and then transferred all rights to AML in 2021. AML continued to maintain and develop the software while licensing it back to S&P.

A Fragile Partner, A Strategic Play

S&P’s troubles became the opening Athena allegedly exploited. In 2023, S&P was criminally charged for operating unlicensed bitcoin ATMs in Ohio, effectively forcing it out of business. Strapped for cash, the company could no longer operate its network of machines.

AML claims that’s when Athena and Mirch pounced, orchestrating a two-pronged strategy: taking physical possession of S&P’s ATMs, while quietly plotting to copy and resell AML’s code. AML alleges Athena even floated the idea of purchasing the code outright in August 2023 but walked away—only to find another way to get it without paying.

Deals in the Shadows

By mid-2024, AML’s lawsuit says Mirch and his company PSBC LLC struck a software consulting deal with AML developer Ryan Pineo’s firm. Athena later contracted with PSBC to “develop” a new platform. But AML claims no development was needed. Instead, it argues, Mirch and the Taproot entities simply repackaged AML’s existing code and funneled it to Athena for profit.

In one of the more explosive claims, AML says Athena ultimately agreed to pay $9 million under a release and termination deal to secure both the physical ATMs and the code itself.

Seeking Justice in Court

AML’s complaint demands sweeping remedies: a permanent order preventing Athena and Mirch from using the code, compensation for damages, and recognition of its ownership rights.

“By misappropriating AML's code, defendants have committed copyright infringement, misappropriation of trade secrets and a number of other unlawful acts,” the lawsuit declares.

Representatives for Athena and Taproot did not respond to requests for comment.

The Stakes Beyond the Courtroom

The case highlights more than just a business dispute. For the cryptocurrency industry, it underscores the volatility of partnerships, the fragility of intellectual property safeguards, and the razor-thin line between innovation and theft.

AML is represented by Joshua D. Martin and Matthew S. Nelles of Johnson & Martin PA. Counsel for Athena and Taproot has not yet surfaced in court filings.