More than 50 cryptocurrency kiosks were recently confiscated in Ohio after an inquiry spearheaded by the Cyber Fraud and Money Laundering Task Force of the United States Secret Service. The kiosks were owned by S&P Solutions, which conducted business as America’s Bitcoin, and three executives were charged with participating in an unlicensed cryptocurrency kiosk operation. The corporation is accused of conspiracy, money laundering, and other crimes, media reports said.
According to the prosecutor, romance scammers, robocallers, and law enforcement impersonators exploited the kiosks to extract funds from users’ cryptocurrency wallets through the company’s systems. The victims were often elderly or vulnerable and directed to Bitcoin of America ATMs, where they withdrew money from savings accounts or 401Ks in return for BTC.
The company has reportedly avoided regulatory safeguards and financial compliance requirements since 2018 and made $3.5 million in profit from unlawful kiosk cash deposits in 2021.
Last week, the kiosks were seized, and search warrants were conducted at the owner and founder Sonny Meraban, manager Reza Meraban, and company attorney William Suriano’s homes. The trio was detained, and the indictment alleges that the company was possible because they provided misleading information about their business to different government agencies. The United States Secret Service’s Cyber Fraud and Money Laundering Task Force and its executives reportedly led the investigation into the company.
Crypto ATMs have been used in a “pig butchering” scam before, where victims are defrauded. The Bitcoin of America case emphasizes the need for greater regulatory oversight of cryptocurrency kiosks and other businesses in the cryptocurrency sector.
The rise of cryptocurrency kiosks and ATMs has been fueled by the growing demand for cryptocurrencies, which has generated a need for convenient and accessible purchasing and selling them. However, the absence of regulation in this field has made it a prime target for criminals seeking to exploit vulnerabilities and loopholes.
The Bitcoin of America case highlights the importance of implementing strong anti-money laundering (AML) and know-your-customer (KYC) protocols and ensuring that all companies in the cryptocurrency sector adhere to the same high standards.
