US Seizes 18 Crypto ATMs Purchased Using Fraudulent SBA Loans — Arrests Owner

U.S. instrumentality enforcement has seized 18 cryptocurrency ATMs that were purchased utilizing fraudulent loans from the Small Business Administration (SBA) meant to assistance tiny businesses financially harmed by the Covid-19 pandemic. The loans were besides utilized to acquisition bitcoin from a New York-based cryptocurrency exchange, said the U.S. Department of Justice (DOJ).

Coindawg’s Crypto ATMs Seized

The U.S. Department of Justice (DOJ) announced connected Thursday that Charles Riley Constant, aka Chuck Constant, has been arrested “for charges successful transportation with a strategy to bargain and launder implicit $1 cardinal successful fraudulently obtained loans from the Small Business Administration (SBA), including the usage of fraud proceeds to acquisition cryptocurrency ATMs.” The Justice Department detailed:

Law enforcement agents seized, among different things, 18 cryptocurrency ATMs successful Texas and Oklahoma that Constant purchased with fraud proceeds to commencement a cryptocurrency ATM concern named ‘Coindawg LLC,’ arsenic good arsenic Coindawg’s website.

The DOJ explained that Constant and his co-conspirators created fake identities and businesses to get 7 Economic Injury Disaster Loans from the SBA opening successful the autumn of 2020. The funds were meant to assistance tiny businesses financially harmed by the Covid-19 pandemic.

Constant utilized astir $700,000 of the fraudulently obtained SBA loans to acquisition bitcoin (BTC) from a cryptocurrency speech headquartered successful New York City, the DOJ further noted.

The Department of Justice continued:

To date, Coindawg has exchanged implicit $3,000,000 worthy of cryptocurrency and charged 15% successful transaction fees.

Constant, 54, of Allen, Texas, has been charged with 1 number of conspiracy to perpetrate wealth laundering, 1 number of theft of nationalist money, and 1 number of interstate receipt of stolen money. If convicted, helium faces a maximum condemnation of 20 years successful situation for conspiracy to perpetrate wealth laundering and 10 years each for theft of nationalist wealth and interstate receipt of stolen money.

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