Illegal mass adoption - page 4. | Bitcointalksearch.org

Oasisman

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Oh oh! Another Bitcoin related crime.

Quote from: adzino on July 23, 2020, 02:12:35 PM

Quote from: bitcoinst on July 23, 2020, 11:01:31 AM

~snip~

I don't see anything wrong over here. That dude was operating an exchange without a license. He would have gotten it if he has applied for it. Not sure why he didn't. Maybe he probably wasn't aware? Or he was aware and was up to something.
I hope he gets a proper justice if he is wasn't aware and has no ill intention. But, if he does had some ill intentions, he is going to get screwed under the money laundering law.

I think he refused to be further investigated and that's where the problem came from. The article says he did somehow complied when Fincen contacted this person to register his company, but deliberately fail to fully comply with the said federal laws. That means he was constantly investigated for operating for such a long period of time without any license to operate his business.

Quote from: The Sceptical Chymist on July 23, 2020, 03:32:56 PM

Quote from: mk4 on July 23, 2020, 11:14:08 AM

~snip~

Well, you know malls these days ain't what they used to be, and who knows what kind of management they have now. Sounds like there were some seriously careless managers at those malls if they allowed this dude to install all those ATMs.

He might have made a good offer to this malls. ATM machines only occupies a very small portion of floor area in the malls. So, I guess the mall management won't dig deeper on your legalities and papers to install your machine if you pay more for the rent.

Quote from: The Sceptical Chymist on July 23, 2020, 03:32:56 PM

Quote from: uneng on July 23, 2020, 02:56:53 PM

~snip~.

No kidding. Thirty years in prison is no joke for not going through the proper channels--but I suspect he won't serve anywhere near that amount of time, depending on how good his lawyer is.

I think he made enough money to get the best lawyer lol. Cheesy

The Sceptical Chymist

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Quote from: mk4 on July 23, 2020, 11:14:08 AM

Wot. This dude managed to get some kiosks in freakin malls without a business license? I'm not even mad, that's impressive.. impressive how the malls have been so careless to the point that they conducted business with some dude without a license.

Well, you know malls these days ain't what they used to be, and who knows what kind of management they have now. Sounds like there were some seriously careless managers at those malls if they allowed this dude to install all those ATMs.

And I don't know “Superman29” was simply attempting to offer bitcoin ATM services or not, but if he was he was extremely careless as well. He had to have known there were regulatory hoops to jump through before setting those things up....but who knows.

Quote from: uneng on July 23, 2020, 02:56:53 PM

Federal intelligence seems to be very attentive to crypto businesses. If someone is willing to work on this field it's better to follow all the government's requirements, especially the ones regard money laundering practice.

No kidding. Thirty years in prison is no joke for not going through the proper channels--but I suspect he won't serve anywhere near that amount of time, depending on how good his lawyer is.

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To be fair, I'm quite amazed how the dude managed to get his 'business' across several key places without having a license. It's not really a case against bitcoin but rather a case against operating and facilitating money exchanges without having the proper license to do so. Also, 30 years isn't really the number of years a person must serve due to licenses; his offense must be more than that to receive a punishment that heavy. Operating a bitcoin ATM is far too risky without having the proper licenses since you are always on the watchful eye of the government for money laundering and whatnot. I don't see anything wrong here, really, and applying for a license should have saved his ass if he really wanted to continue this kind of business.

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Quote from: adzino on July 23, 2020, 02:12:35 PM

I don't see anything wrong over here. That dude was operating an exchange without a license. He would have gotten it if he has applied for it. Not sure why he didn't. Maybe he probably wasn't aware? Or he was aware and was up to something.
I hope he gets a proper justice if he is wasn't aware and has no ill intention. But, if he does had some ill intentions, he is going to get screwed under the money laundering law.

I think if it was just a license problem the sentence wouldn't be so tough. The point is that he was being investigated for a long time already and federal agents collected irrefutable evidences of his awareness about money laundering when dealing crypto currency with his customers.
He also admited that, like we can see on the link below:

Quote from: DdmrDdmr on July 23, 2020, 11:25:28 AM

Well, he did allegedly help to launder up to 25M$ through his Bitcoin ATM network. Apparently, an undercover agent managed to purchase 14,500$ at a given ATM during September 2018, failing the ATM owner to file the necessary reports for the sums. If that was not enough, he also transacted similar amounts with some other undercover agents in person (allegedly workers from a "karaoke bar" that went the extra mile for their customers), also failing to file the necessary reports. Twice shy ...

https://www.justice.gov/usao-cdca/pr/oc-man-admits-operating-unlicensed-atm-network-laundered-millions-dollars-bitcoin-and

Quote

Mohammad generally did not inquire as to the source of the clients’ funds and on many occasions he knew the funds were the proceeds of criminal activity. Mohammad admitted that he knew at least one Herocoin client was engaged in illegal activity on the dark web.

Federal intelligence seems to be very attentive to crypto businesses. If someone is willing to work on this field it's better to follow all the government's requirements, especially the ones regard money laundering practice.

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Quote from: BrewMaster on July 23, 2020, 12:36:47 PM

Quote from: bitcoinst on July 23, 2020, 11:01:31 AM

To be honest, this is the first time I've heard about illegal Bitcoin ATMs.

this is not the first time to be honest with you. there has been multiple other cases. it seems like some people think just because bitcoin is decentralized and doesn't need any license to be used, they can also run a bitcoin ATM without any license or stuff like that.
here is a case from 2018 in India as an example:
https://www.news18.com/news/india/indias-first-bitcoin-atm-seized-owner-arrested-for-illegal-kiosk-1918235.html

For me this is also something I hear of for the first time but I can't say I'm surprised. You're right, just because Bitcoin is decentralized and independent many think that everything is allowed and that Bitcoin are its related services are out of any kind of law and regulation. Of.course that it's not true but some people ignore it and that is why Bitcoin is often involved in different illegal or half illegal activities.

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Quote from: bitcoinst on July 23, 2020, 11:01:31 AM

A man in California has agreed to plead guilty to operating an illegal bitcoin ATM network that exchanged up to $25 million, according to a U.S. Department of Justice announcement on Wednesday.

Kais Mohammad, 36, who goes by the digital moniker “Superman29,” was charged in the United States District Court on three counts: for operating an unlicensed money exchange business, for money laundering and for not being able to maintain an effective anti-money laundering program.

He purchased Bitcoin ATM-type kiosks which were placed in malls, gas stations and convenience stores in several California counties. These kiosks allowed customers to buy and sell Bitcoin in exchange for cash. Mohammad supplied the machines with cash that customers could withdraw and maintained the server software to keep the kiosks running

https://www.theblockcrypto.com/linked/72697/doj-california-bitcoin-atm

----

We live in amazing times. To be honest, this is the first time I've heard about illegal Bitcoin ATMs. Now Muhammad can get 30 years in prison for illegal mass adoption.

I wonder what will happen to ATMs and what is their number, I hope the state will appropriate it and allow people to use them with reduced commissions. Grin

I don't see anything wrong over here. That dude was operating an exchange without a license. He would have gotten it if he has applied for it. Not sure why he didn't. Maybe he probably wasn't aware? Or he was aware and was up to something.
I hope he gets a proper justice if he is wasn't aware and has no ill intention. But, if he does had some ill intentions, he is going to get screwed under the money laundering law.

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Quote from: mk4 on July 23, 2020, 11:14:08 AM

Wot. This dude managed to get some kiosks in freakin malls without a business license? I'm not even mad, that's impressive.. impressive how the malls have been so careless to the point that they conducted business with some dude without a license.

I really don't know what this dude was thinking though. Did he really expect to not get caught? I would understand if he did everything online, but we're talking about physical bitcoin ATMs. Literally thousands of people pass by those ATMs by the daily LOL.

While reading the article, the same questions occurred to me. It's just a matter of time before you get caught while carrying out such machinations in the United States.
I think there is every chance that he will make a deal with the investigation, given that he had connections with criminals. So maybe his prison term will be reduced. But I doubt that he will live to old age.

Quote from: BrewMaster on July 23, 2020, 12:36:47 PM

this is not the first time to be honest with you. there has been multiple other cases. it seems like some people think just because bitcoin is decentralized and doesn't need any license to be used, they can also run a bitcoin ATM without any license or stuff like that.
here is a case from 2018 in India as an example:
https://www.news18.com/news/india/indias-first-bitcoin-atm-seized-owner-arrested-for-illegal-kiosk-1918235.html

I have no doubt that such precedents have already existed, especially in such a country of opportunities as India, but this news passed me by.

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Quote from: bitcoinst on July 23, 2020, 11:01:31 AM

To be honest, this is the first time I've heard about illegal Bitcoin ATMs.

this is not the first time to be honest with you. there has been multiple other cases. it seems like some people think just because bitcoin is decentralized and doesn't need any license to be used, they can also run a bitcoin ATM without any license or stuff like that.
here is a case from 2018 in India as an example:
https://www.news18.com/news/india/indias-first-bitcoin-atm-seized-owner-arrested-for-illegal-kiosk-1918235.html

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Quote from: mk4 on July 23, 2020, 11:14:08 AM

Wot. This dude managed to get some kiosks in freakin malls without a business license? I'm not even mad, that's impressive.. impressive how the malls have been so careless to the point that they conducted business with some dude without a license.

I don't know what the laws are in the US but here it's pretty easy to install almost any kind of teller machine in malls, since it's a private company running it they will simply lend you the space needed, you just need a registered company and that's all, nobody will do extended checks on you, like a fincen compliant check. They are happy to take your money as long as your machines don't interfere too much with the shop activity. Besides he started his business well back in 2014, probably got them set up years ago when rules were much much lax.

Quote from: palle11 on July 23, 2020, 12:02:48 PM

However, I was a little confused by the title coming as illegal ATM.

Nice clickbait, right? Got me too!!

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Quote from: mk4 on July 23, 2020, 11:14:08 AM

Wot. This dude managed to get some kiosks in freakin malls without a business license? I'm not even mad, that's impressive.. impressive how the malls have been so careless to the point that they conducted business with some dude without a license.

I really don't know what this dude was thinking though. Did he really expect to not get caught? I would understand if he did everything online, but we're talking about physical bitcoin ATMs. Literally thousands of people pass by those ATMs by the daily LOL.

Not only the dude should lick the walls of prison bars but also the agent or the person in charge for whatever means that he bought the ATM machine.
However, I was a little confused by the title coming as illegal ATM. I thought the ATM itself was fake and scamming users but now I understand that it is the process of acquisition that was illegal.

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The problem is not the illegal mass adoption but the fact that he chose to look away which is what they are going to use to hang him and he might go away for a long time or maybe pay one huge fine. From the posts earlier, its obvious that this is an action that have been planned that he has dealt with undercover agents without taking proper precautions. From the way I see it, its two major charges

1. Operating illegal money shop like not having a business license to operate which would likely to pay a fine then close the business and maybe even go to jail for a shorter time and

2. The money laundering charges which is the most important part because he simply fail to do KYCs by looking the other way when his customers came to transact business. Yes he has done his part in bringing some publicity to the crypto world, but things needs to be done the right way to avoid problem with the authorities.

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Well, he did allegedly help to launder up to 25M$ through his Bitcoin ATM network. Apparently, an undercover agent managed to purchase 14,500$ at a given ATM during September 2018, failing the ATM owner to file the necessary reports for the sums. If that was not enough, he also transacted similar amounts with some other undercover agents in person (allegedly workers from a "karaoke bar" that went the extra mile for their customers), also failing to file the necessary reports. Twice shy ...

https://www.justice.gov/usao-cdca/pr/oc-man-admits-operating-unlicensed-atm-network-laundered-millions-dollars-bitcoin-and

mk4

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Wot. This dude managed to get some kiosks in freakin malls without a business license? I'm not even mad, that's impressive.. impressive how the malls have been so careless to the point that they conducted business with some dude without a license.

I really don't know what this dude was thinking though. Did he really expect to not get caught? I would understand if he did everything online, but we're talking about physical bitcoin ATMs. Literally thousands of people pass by those ATMs by the daily LOL.

bitcoinst

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A man in California has agreed to plead guilty to operating an illegal bitcoin ATM network that exchanged up to $25 million, according to a U.S. Department of Justice announcement on Wednesday.

Kais Mohammad, 36, who goes by the digital moniker “Superman29,” was charged in the United States District Court on three counts: for operating an unlicensed money exchange business, for money laundering and for not being able to maintain an effective anti-money laundering program.

He purchased Bitcoin ATM-type kiosks which were placed in malls, gas stations and convenience stores in several California counties. These kiosks allowed customers to buy and sell Bitcoin in exchange for cash. Mohammad supplied the machines with cash that customers could withdraw and maintained the server software to keep the kiosks running

https://www.theblockcrypto.com/linked/72697/doj-california-bitcoin-atm

----

We live in amazing times. To be honest, this is the first time I've heard about illegal Bitcoin ATMs. Now Muhammad can get 30 years in prison for illegal mass adoption.

I wonder what will happen to ATMs and what is their number, I hope the state will appropriate it and allow people to use them with reduced commissions. Grin

Topic: Illegal mass adoption - page 4. (Read 683 times)