US Seizes 18 Crypto ATMs Purchased Using Fraudulent SBA Loans — Arrests Owner – Regulation Bitcoin News
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The US Department of Justice (DOJ) has recently seized 18 cryptocurrency ATMs that were purchased using fraudulent Small Business Administration (SBA) loans. The owner of the machines, Kais Mohammad, was also arrested for his involvement in the scheme.
According to the DOJ, Mohammad had applied for and received three SBA loans totaling $1.1 million. He then used the funds to purchase the cryptocurrency ATMs from a manufacturer in Hong Kong, which he later stored in storefronts throughout Southern California.
However, it was later discovered that Mohammad had falsified information on the loan applications in order to receive the funds. The DOJ stated that Mohammad claimed to have several employees and inflated his business expenses, among other misrepresentations.
Once the fraud was exposed, the DOJ obtained a warrant to seize the cryptocurrency ATMs, which were located at various retail locations throughout Southern California. The machines were seized in March of this year and are currently in the DOJ’s possession.
In addition to the seizure of the cryptocurrency ATMs, Mohammad was also arrested on April 8th and faces charges of bank fraud, wire fraud, and money laundering. If convicted, he could face up to 30 years in prison.
The seizure of the cryptocurrency ATMs is the latest example of law enforcement cracking down on illegal cryptocurrency activities. As cryptocurrencies become increasingly popular and mainstream, regulators are working to ensure that they are not used for criminal activities such as money laundering and fraud.
In addition to law enforcement efforts, there have also been increased calls for stricter regulation of the cryptocurrency industry. While cryptocurrencies offer several advantages such as fast, cheap, and anonymous transactions, they also present unique challenges to regulators due to their decentralized and global nature.
Overall, the seizure of the cryptocurrency ATMs is a reminder that illegal activities in the cryptocurrency world will not be tolerated, and that law enforcement agencies are actively working to identify and prosecute those who engage in such activities.
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