Mar 06, 2023
Three Execs, Bitcoin of America Indicted for Unlicensed Crypto Kiosks Money Laundering
S&P Solutions, a Bitcoin (BTC) technology firm, and its executives are facing a criminal indictment for allegedly running more than 50 unlicensed crypto kiosks in Ohio without proper anti-money laundering protections. The firm, which operated as Bitcoin of America, and its three executives were arrested last week in connection with the charges of money laundering, conspiracy, and other crimes.
The Cuyahoga County grand jury returned the indictment on Mar. 1 against the firm, its owner and founder Sonny Meraban, manager Reza Meraban, and company attorney William Suriano. According to the prosecuting attorney Andrew Rogalski, romance scammers, law enforcement impersonators, and “robocallers” exploited the lack of anti-money laundering safeguards in the firm’s systems to transfer funds out of users’ crypto wallets.
Rogalski commented during a press conference that “these ATMs are ready-made for scammers,” adding that they:
“Direct the victims, which are often elderly or otherwise vulnerable, to specifically go to Bitcoin of American ATMs, take money that they’ve withdrawn from their savings accounts or 401Ks,”
He added that in one instance, an elderly gentleman lost $11,250 in three transactions to one of the kiosks in under an hour.
The indictment also accuses the firm of being able to operate due to “written misrepresentations regarding the nature of their business to government agencies,” helping it run the kiosks without a money transfer license. The company pocketed a 20% transfer fee each time this occurred and continued to do so even after learning they were fraudulent.
The investigation into the firm and its executives was reportedly spearheaded by the United States Secret Service’s Cyber Fraud and Money Laundering Task Force. The firm has made $3.5 million in profits from cash deposits at these unlawful kiosks in 2021 and 52 of them were seized last week.
Crypto ATMs are emerging as a popular method for crypto scam payments, according to the FBI’s Miami Field Office. The office warned in October that crypto ATMs were becoming a popular vehicle for scammers to defraud victims in an increasing trend of “pig butchering” scams.
For those interested in the web3 space, it is important to understand the risks associated with crypto ATMs. The lack of anti-money laundering protections and the potential for scams make them a risky investment. It is important to do your due diligence and research any crypto ATM before making a transaction.
Additionally, those looking to promote or sell NFTs should consider working with a reputable NFT marketing agency or web3 agency. They can help ensure that your NFTs are promoted properly and securely. Additionally, they can help you create effective Twitter NFT marketing campaigns to reach a wide audience.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.