June 23, 2021
Markets

Feds Send Man To Pen For Laundering Up To $25M Through Bitcoin ATM Machines And Herocoin Crypto

A Southern California man has been sentenced to two years in federal prison for illegally operating Bitcoin ATM machines and kiosks where customers could buy the crypto with cash, or sell it in exchange for cash. Kais Mohammad, 37, was sentenced at U.S. District Court in Santa Ana.

Mohammad ran an unlicensed virtual currency business and laundered up to $25 million in Bitcoin and cash for five years through Herocoin, a cryptocurrency token that operates on the Ethereum platform and contains a smart contract allowing decentralized peer-to-peer online betting.

Mohammad owned and operated Herocoin for five years and offered Bitcoin ATM cash-exchange services, Ciaran McEvoy, spokesman for the U.S. Attorney’s Office said. He charged commissions of up to 25 percent, well above the market rate, the Orange County Register reported.

The company operated a network of…

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