Last Updated on February 1, 2021 by Ope Quadri
The United States has taken down at least $25 million bitcoin ATM operation, seizing 17 machines along with some cryptocurrencies, the government dubbed it unlicensed BTC ATM.
The Department of Justice accused the man behind the ATM Kais Mohammad of a criminal act, saying the bitcoin ATMs had been used to laundered millions of dollars of bitcoin for criminals.
If found guilty, Kais Mohammad will be facing up to 30 years in prison for the charges.
His operation is tagged Herocoin which the U.S government described as “unlicensed bitcoin money service business”
Through his Herocoin, Kais Mohammad was offering to exchange bitcoin for cash, charging commissions of up to 25%, Department of Justice said.
It was gathered that his advertised his exchange business online using the moniker “Superman29,” but served clients throughout Southern California.
Research also showed that he met clients at a public location and exchanged bitcoin for them of up to $25,000 without inquiring about the source of their funds.
Mohammad, according to report later purchased and advertised a network of two-way Bitcoin ATM kiosks located in malls, gas stations, and convenience stores in Los Angeles, Orange, Riverside and San Bernardino counties.
“Mohammad processed cryptocurrency deposited into the machines, supplied the machines with cash that customers would withdraw, and maintained the server software that operated the machines.”
Herocoin was not registered, which is against the law of the US. He needed to register at the Financial Crimes Enforcement Network (FinCEN) before he could operate.