The U.S. government has taken down a $25 million bitcoin ATM operation and seized 17 machines along with some cryptocurrencies. The Department of Justice says the man behind this unlicensed bitcoin ATM operation has agreed to plead guilty and is facing up to 30 years in prison.
US Dismantles Bitcoin ATM Operation
The U.S. Department of Justice (DOJ) announced Wednesday that a California man, Kais Mohammad, has admitted to operating an unlicensed bitcoin ATM network that “laundered millions of dollars of bitcoin and cash for criminals’ benefit.”
The 39-year-old owned and operated an unlicensed bitcoin money service business called Herocoin where he offered to exchange bitcoin for cash, charging commissions of up to 25%, the DOJ detailed. He advertised his exchange business online using the moniker “Superman29,” but served clients throughout Southern California. Typically, 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 later purchased…