Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals

A bitcoin ATM relation has been indicted successful New York for moving an amerciable concern “marketed towards individuals engaged successful transgression activity.” The territory lawyer successful complaint described: “Robert Taylor allegedly went to large lengths to support his bitcoin kiosk concern arsenic concealed arsenic imaginable to pull a clientele that would wage apical dollar for anonymity.”

Operator of 46 Bitcoin ATMs Charged

Manhattan District Attorney Alvin Bragg Jr. announced Wednesday that Robert Taylor has been indicted “for operating an amerciable bitcoin ATM concern that helium marketed towards individuals engaged successful transgression activity.”

The announcement states:

Taylor operated bitcoin kiosks successful astatine slightest 46 locations successful New York City, mostly successful laundromats, arsenic good arsenic locations successful New Jersey and Miami.

Between 2017 and 2018, the 35-year-old “converted much than $5.6 cardinal of his customers’ currency into bitcoin portion charging a interest of betwixt 10% and 20%,” the territory lawyer detailed.

Taylor is charged “with aggregate counts of operating an unlicensed wealth transmission business, transgression taxation fraud successful the 3rd degree, and offering a mendacious instrumentality for filing successful the archetypal degree.”

Bragg described, “Robert Taylor allegedly went to large lengths to support his bitcoin kiosk concern arsenic concealed arsenic imaginable to pull a clientele that would wage apical dollar for anonymity,” elaborating:

As the usage of cryptocurrencies similar bitcoin proliferate, they proceed to pull a wide scope of atrocious actors who are hoping to evade instrumentality enforcement.

The announcement further notes:

In total, the hunt warrants resulted successful the betterment of $250,000 successful currency from Taylor’s apartment, arsenic good arsenic 20 bitcoin ATMs containing $44,000 successful cash.

Forensic investigation showed that much than $5.6 cardinal successful currency was deposited into Taylor’s bitcoin ATMs betwixt September 2017 and November 2018. More than $590,000 successful fees were collected and astir $160,000 were deposited into Taylor’s idiosyncratic slope accounts.

However, Taylor lone reported an income of astir $3,000 connected his 2017 taxation returns and a nonaccomplishment of $140,000 connected his 2018 taxation returns.

In addition, his concern did not person a wealth transmission licence oregon a virtual currency concern licence (Bitlicense) from the New York State Department of Financial Services (DFS). It is besides not licensed by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

What bash you deliberation astir this case? Let america cognize successful the comments conception below.

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