Bitcoin ATM Operators in the United States Accused of Fraud and Money Laundering

The executives of S&P Solutions, which operated under the Bitcoin of America brand, were charged with installing unlicensed Bitcoin ATMs in the United States that were used to commit fraud. Local media reported.

3 men, 1 business charged in cryptocurrency scam; avoid Bitcoin of America ATMs, Cuyahoga Co. prosecutor says https://t.co/LaR1L2E1yH

— News 5 Cleveland (@WEWS) March 2, 2023

According to the indictment, the kiosks operated by the company lacked anti-money-laundering protections, which allowed them to be actively used by various criminals. A victim was instructed to top up a wallet they believed was theirs, but the money went to the scammers.

Most of the victims were elderly. One of them lost $11,250 in the scam.

“S&P Solutions collected a 20% commission on every transfer and continued doing so even after learning of the fraudulent operations,” prosecutors noted.

In 2021 alone, the company earned $3.5 million from cash deposits at its illegal kiosks.

During the investigation, founder Sonny Meraban, manager Reza Meraban, and the company’s attorney William Suriano were arrested; searches were carried out at their homes in Florida and Illinois. Law enforcement also seized 52 Bitcoin ATMs in Ohio.

In addition to charges of money laundering, conspiracy, involvement in corrupt activities and other crimes, authorities believe the firm has evaded regulatory safeguards and financial compliance requirements since 2018. In particular, it did not have a license to conduct money transfers.

Bitcoin of America operates more than 2,600 crypto ATMs in 35 states and is the fourth-largest operator of these devices in the United States.

In mid-February, UK authorities conducted raids on Bitcoin ATMs.