California Department of Justice Destroys Illegal Bitcoin ATM Ring

Kais Mohammad was sentenced to two years in prison after pleading guilty to operating an unlicensed virtual currency and laundering between $15 million and $25 million in Bitcoin and cash. Between December 2014 and November 2019, Mohammad used the alias "Superman29" to advertise his business online, with customers who owned and operated "Herocoin" and bought and sold Bitcoin for cash in transactions of up to $ 25,000. It also paid 25% commission for these transactions, a significant increase over the standard rate. These transactions were different from Bitcoin kiosks where users could buy and sell Bitcoins without the necessary identification procedures. It also allowed clients to make multiple consecutive transactions of up to $3,000 each. It is unclear how these machines differ from a standard cryptocurrency machine. He knew that some of his clients' money came from illegal activities and crime. Specifically, Mohammad was aware that a client's money was the proceeds of crimes from the dark web. Ciaran McEvoy, spokesperson for the US Attorney General, said the Unlicensed Bitcoin ATM Network, Mohammad is also a former banking industry employee. He was probably aware of the need to register his activity on the United States Treasury Department's Financial Crimes Enforcement Network (FinCEN). "Instead of using his knowledge to create a robust compliance program, he completely avoided one and took advantage of making his business an efficient, uncontrolled, and almost anonymous channel for money laundering and other crimes," the officers said. Justice involved in Muhammad's punishment. McEvoy said he probably knew that Mohammed's activities fall under anti-money laundering regulations, such as filing currency transaction reports, conducting due diligence on customers, and submitting suspicious activity reports for transactions over $ 2,000 he knows or owns. reasons

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