Kais Mohammed, an illegal Bitcoin ATM operator in America, has pleaded guilty to three count crime charges against him in connection with illegal crypto money service.
Reportedly, Mohammed’s illegal business processed payment worth $25 million, with the majority of this amount being proceeds from illegal operations. Mohammed is also said to have founded Herocoin, another illegal crypto business that operated for five years between 2014 and 2019.
Mohammed helped his clients convert BTC to fiat charging them 25 percent commission for his service.
Mohammed’s illegal Bitcoin ATM strategically placed
The illegal Bitcoin ATM operator had these machines strategically positioned in Malls and gas stations across California. Adopting pseudonym superman 29, Mohammed advertised his services on online platforms, claiming he helps in buying and selling Bitcoin in Southern California.
Reportedly, Mohammed met his clients in public places, conducted transactions with then, and never inquired about the source of funds or required client identification. When he pleaded guilty, however, he admitted that he knew some of the money were proceeds from illegal operations, which he converted from BTC to cash.
As Mohammed’s operation grew, he expanded into BTC ATMs, according to authorities. The U.S Department of Justice said Mohammed failed to register his business on purpose with the Financial Crimes Enforcement Network (FinCEN). Also, he failed to develop an effective anti-money laundering program or file currency transaction reports for exchanges above $10,000, which he admitted.
Mohammed at risk of 30 years jail term
Mohammed, after FinCEN, reached out to him to register his firm, and he complied, he failed to abide by laid down rules of the regulator.
According to the DoJ, Mohammed was nailed after law enforcement agents conducted business with him as undercover. They purchased Bitcoin worth over $14,000 from him at different times. Another agent opened up to him that he was into sex trafficking business and needed money laundering services Mohammed provided.
After pleading guilty to three count charges against him, hearing of his case would hold in a few weeks as he could face a statutory maximum sentence of 30 years in prison.