The 46 Bitcoin ATM operator camouflaged its business from the public light, operating it hidden in laundromats.
Bitcoin ATMs have increased their activity year after year. There are already 36,728 active ATMs as of today, growing by more than 18 daily, according to data from CoinATMRadar. Of these ATMs, around 90% operate in the United States of America, while the vast majority of Latin America is far behind.
For many, ATMs are a great benefit and an advantage for purchasing digital assets, even though the fees are a bit higher. However, for some people, they are ideal devices for use by people hiding funds from the law.
In January, in the United States of America, the authorities warned about Bitcoin ATMs in illicit activities. A Bitcoin ATM operator got spotted in New York for allegedly leading illegal activities that attract criminals.
Illegal Procedures In Laundries
The Manhattan District Attorney Alvin Bragg Jr. expressed that Robert Taylor got accused of carrying out an illegal Bitcoin ATM business that he traded to individuals involved in criminal activity.
According to the District Attorney, in 2017 and 2018, the 35-year-old turned $5.6 million cash into bitcoin while asking for a 10% to 20% fee.
Taylor got accused of having control over multiple money transmission businesses without a license, criminal fraud in the third degree, and bringing a false tool to carry out fraud.
An Analysis highlighted that at least $5.6 million or even more cash got housed at Taylor’s Bitcoin ATMs between September 2017 and November 2018. More than $590,000 in fees got received, and at least $160,000 got housed in bank accounts.
However, Taylor only revealed an amount registered at $3,000 on incomes based on tax returns and a loss of $140,000 on her 2018 tax returns.
In addition, Taylor’s business did not have a money transmission license, permission or a virtual currency business approval issued by the New York Department of Financial Services necessary to carry out these activities in the state. Taylor is also not licensed by the US Treasury Department’s Financial Crimes Enforcement platform.
The attorney leading the case explained that Robert Taylor implemented extreme measures to keep his bitcoin ATM business as camouflaged as possible to seduce users who would pay tons of money to carry out anonymous activities.
FTC Alerts on ATM Scam
The United States Federal Trade Commission launched an alert on Monday about a new form of a cryptocurrency scam that takes advantage of ATMs (also called kiosks).
The authority expressed that the attackers usually pose as government officials, law enforcement officers, or employees of public companies to request funds. The scam includes several factors: a spoof, a QR code, and a cryptocurrency ATM. Impostors can also reach vulnerable sites like dating apps to pose potential romantic partners or trick victims by advertising a fake prize.
The scammers ask them to withdraw cash and go to an ATM. They then tell the victim to purchase digital coins at the ATM and send the victim a QR to transfer the funds in crypto to the attackers.
By: Jenson Nuñez
