A Bitcoin ATM company, S&P Solutions, and its three executives were reportedly charged for roles in a number of illicit activities and operating unlicensed cryptocurrency kiosks. Company’s Ohio-based kiosks were said to profit from the money lured from the victims of crypto frauds. The United States Secret Service’s Cyber Fraud and Money Laundering Task Force were investigating the case.
The bitcoin technology company operated as Bitcoin of America. The three executives: founder Sonny Meraban, Meraban’s father and manager of the company Reza Meraban and attorney William Suriano, were allegedly charged with more than 50 charges. The indictment against the Bitcoin ATM company and its executives was returned by a Cuyahoga County grand jury.
It includes one charge each of conspiracy, engaging in corrupt activities, taxation, and possession of criminal tools, five charges of records tampering, eight charges of stolen property, and 33 charges of violation of license requirements and financial compliances.
The special agent in charge from the US Secret Service, Blaine Forschen, revealed the insights from their investigation. He noted that soon after launching their Bitcoin ATMs the complaints against Bitcoin of America started surfacing.
According to the investigation, Bitcoin of America has been neglecting many “regulatory safeguards and financial compliance requirements in Ohio.” He alleged that the company misrepresented its role in the process of cryptocurrency transfers. It acted as a passage facilitating money to move from victims to defrauders without being caught or monitored.
Since the company’s Bitcoin ATMs in Ohio are not licensed, its misrepresentation of money transfer facilities and lack of regulations in the region made the firm a suitable option for scammers.
Lack of Compliance Made Bitcoin ATMs a Preferable Choice
Cuyahoga County Prosecutor’s Office economic crime supervisor, Andrew Rogalski, explained that given the company had inadequacy of money laundering compliance. This enabled them to receive illegal funds and payments from victims and launder it for criminals. This case remained the same across the US and globally.
While calling out a few, he said that scammers, robocallers, and organized crime groups around the globe exploited the lack of compliance and licensing of Bitcoin of America. Cryptocurrency is a nascent industry but laws to deal with them are not new. Since crypto is all things capital and funds, money transfer demands a license in Ohio State which the company didn’t have.
In addition to facilitating the safe passage to defrauders, the company was also said to have its commission. The investigation found that Bitcoin of America made a profit after taking 20% from every transaction. Regardless of whether transactions were legitimate or illegal, the company’s cut remained intact.
The investigators said it made the company about 3.5 million USD until 2021. In the wake of the investigation, about 52 such ATMs were seized. Most of them were installed at the gas stations across Lorrain and Cuyahoga region.
Bitcoin of America is a prominent name within the United States as a known Bitcoin ATM company. It has more than 2,600 crypto ATMs in 35 states in the country. It is the fourth largest crypto ATM company.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/06/bitcoin-atm-company-charged-for-operating-unlicensed-crypto-kiosks/