Illegal mass adoption

[pakhitheboss]

Wot. This dude managed to get some kiosks in freakin malls without a business license? I'm not even mad, that's impressive.. impressive how the malls have been so careless to the point that they conducted business with some dude without a license.

I really don't know what this dude was thinking though. Did he really expect to not get caught? I would understand if he did everything online, but we're talking about physical bitcoin ATMs. Literally thousands of people pass by those ATMs by the daily LOL.

The term illegal means using unlawful activity, providing forged business licence also fall under this category.

I am pretty sure he might have also shown forged business license to the managers of these Malls plus a small percentage from the revenue generated by the kiosk.

Without the involvement of bribe and commission, you cannot operate illegal business so easily.

[GDragon]

This reminds me of an office that I visited back then somewhere in the National Capital Region of the Philippines. It was last year. My friend and I have visited her business contact, and he showed to us his various Bitcoin ATMs. I asked him if these Bitcoin ATMs are already registered and regulated for massive adoption, but he said it was still "under process", so it was not yet licensed to operate in various public establishments.

It's very essential for a Bitcoin ATM to be registered with proper license even if it's decentralized. Although licensing fees costs us a lot, it's way better than just doing massive adoption in an illegal way. Like Forsage right now, they are massively adopting Ethereum in an illegal way.

Oh we have it here? I haven't seen one as of now. I think that under process atm also means it won't be registered. Our country doesn't even care about crypto right now, I haven't heard of a news about illegal btc atm. I just thought officials here doesn't care about it. If they care tho, I'm still sure officials here would look the other way if the owner is somehow powerful. Or even get a percent of money out of it.

Its a serious case cause he already admitted he is aware some of the money really came from crime activities. So its really a case of money laundering.

[mirakal]

I am not sure if this guy is thinking straight, spending that huge money for the business without knowing the legalities of what he is doing.
The intention was good if it's for mass adoption but we know the eyes of the regulators are always looking into us, especially in this case that ATMs were put in public players.

Damn, 30 years of imprisonment if proven guilty, I think that's something he will regret for the rest of his life.

[ray_saeed]

Illegal mass adoption sounds funny but this could be really harmful for the industry

[hatshepsut93]

Common, nobody would pay 25% just for privacy, even if we speak of sums above 1k it was worth the effort to go in another city and deal with a different ATM. And why did he kept meeting clients..

Criminals can pay 25% for laundering their money, but this scheme of his doesn't look like a good money laundering. Just because you bought or sold some Bitcoin, it doesn't make these money clean, especially if it's at an unlicensed exchange. There's no front here, it's just conversion from one currency to another.

[maxreish]

It's also my first time I've heard about illegal bitcoin ATM machines. And to think he put it up in malls. I am just wondering, ofcourse he can afford to get some legal licenses for making a crypto exchanges and ATM btc machines. Why not process in a legal way if it's a matter of money, I surely know he can afford it. This is something that I was vague upon understanding his decisions. Thus, making me a conclusion that it was just a front for his illegal activities like that of money laundering.

[audaciousbeing]

Wot. This dude managed to get some kiosks in freakin malls without a business license? I'm not even mad, that's impressive.. impressive how the malls have been so careless to the point that they conducted business with some dude without a license.

I really don't know what this dude was thinking though. Did he really expect to not get caught? I would understand if he did everything online, but we're talking about physical bitcoin ATMs. Literally thousands of people pass by those ATMs by the daily LOL.

Malls are built to make money and they are concerned with how much money they can make within the space they have. Other than the shops that they would likely go a long way of doing some verifications and the likes, any other use of space are interpreted as alternative income which they would always encouraged themselves to always maximize. Places such as walkways, underneath the stairs, parking spaces etc are some of those places that there is little or no control whatsoever which I believe the guy in question must have take advantage of.

But with this, if the authority can make them share in the liability or shake them a little bit, they would surely sit up and ask for the right documentations before granting approvals.

[plvbob0070]

He made a business but is not licensed. How come he thinks of putting up various bitcoin ATMs in public places without thinking of the consequences of not having a license to do so? Now, he's getting sentenced for it. It's his fault after all. And it's also stated in the article that he's fully aware that some of the funds are from illegal activities. Perhaps it's the reason why he can't get licensed with it but still continue to operate ATMs.

He still chooses to do it so he's responsible for the consequences. It's essential for businesses (not only bitcoin ATMs) to have their permit and license before operating. He will probably regret it but he can't undo what he did.

[kryptqnick]

I don't understand why the formulation is 'has agreed to plead guilty'. It's like he's not really guilty, but was convinced to say that he is. I'm sure that there are Bitcoin ATMs installed and operating legally in the US, and if he did not comply with the regulations, he is indeed guilty. 30 years of prison would be too much, though. I think that for crimes like that (money laundering, tax evasion and similar) there should be big fines, not prison sentences. He didn't abuse the rights of any human beings.
I don't like this particular guy, though, because charging 25% in fees is just crazy.

[ChiBitCTy]

This is the first time I've heard of anyone messing with ATM's.  I guess as the saying goes if there's a will there's a way.  It's unfortunate because I'm guessing some people now might be hesitant to take our bitcoins via ATMS going foward.

[Ucy]

I usually wondered how Bitcoin atm in other part of the world operates. Most/many without license?
Well, this is one of the issues I consider whenever the thought of encouraging people to try the bitcoin atm or even Bitcoin PoS comes. I guess they should make the licensing easy to obtain depending on the volume of transaction a business would handle.

[jademaxsuy]

But he pleaded guilty so this case could go down as well. How settlement on this OP is it still possible?? I know there were news here regarding bitcoin atm but did the owner knows nothing about how to run a business? He was successful in marketing but it never did it come to his mind about his doings that is clearly an illegal and worst is that the case has high punishment.

So, to all who had plan to do a business make an inquiry first to a government agency before operating a business. Usually license is a must to serve and protect both consumers and the business owner.

[stiffbud]

Wot. This dude managed to get some kiosks in freakin malls without a business license? I'm not even mad, that's impressive.. impressive how the malls have been so careless to the point that they conducted business with some dude without a license.

I really don't know what this dude was thinking though. Did he really expect to not get caught? I would understand if he did everything online, but we're talking about physical bitcoin ATMs. Literally thousands of people pass by those ATMs by the daily LOL.

More intriguing thing is that there isn't any data or any transaction records of the people who purchased the bitcoins from these bitcoin ATMs and this just laughs on the face of AML laws, this shows the real power of bitcoin as to taking the finance in our hands, This man is really a legend to have done such a gutsy job.

I usually wondered how Bitcoin atm in other part of the world operates. Most/many without license?

If you have to do any kind of business, especially for exchanging money, you need to have a License in most parts of the world, even the money exchangers near the airports of every major city also require license to exchange the money of the tourists. Obtaining a license in those countries where bitcoin and crypto isn't legal yet is going to be bit of a problematic task, but if the demand is good then it will be worth the hustle.

[Wapfika]

I usually wondered how Bitcoin atm in other part of the world operates. Most/many without license?
Well, this is one of the issues I consider whenever the thought of encouraging people to try the bitcoin atm or even Bitcoin PoS comes. I guess they should make the licensing easy to obtain depending on the volume of transaction a business would handle.

Since only few Bitcoin ATM are present in my country, it is really hard to convince one to try it especially if its too far from our area, though it's quite convincing to others telling them that there is some Bitcoin ATM available now. There is also a specific bank that accepts crypto now that makes it more attractive, its a known bank also which many who knows crypto are wanting to use it too. We're hoping soon that many establishments accept it but in legal process to secure people's money.

[Leonardo7]

People should learn to always abide by the laws of the land to avoid clashing with the government. The government and the banks have been skeptical about bitcoin and cryptocurrency, therefore proper legal work must be done and complied with to avoid been on the government radar.

[thesmallgod]

how did he even persuaded them at the mall to operate an ATM without any business registration and License ? there could be more to this. It is amazing that US is recognizing crypto as a form of money but operating an bitcoin ATM business is just like owning a crypto exchange platform which need to be registered in a country of interest. Operating such an illegal business stance a chance of being  paraded by criminals who can be involved in money laundering

[Nhor1011]

A man in California has agreed to plead guilty to operating an illegal bitcoin ATM network that exchanged up to $25 million, according to a U.S. Department of Justice announcement on Wednesday.

Kais Mohammad, 36, who goes by the digital moniker  “Superman29,” was charged in the United States District Court on three counts: for operating an unlicensed money exchange business, for money laundering and for not being able to maintain an effective anti-money laundering program.

He purchased Bitcoin ATM-type kiosks which were placed in malls, gas stations and convenience stores in several California counties. These kiosks allowed customers to buy and sell Bitcoin in exchange for cash. Mohammad supplied the machines with cash that customers could withdraw and maintained the server software to keep the kiosks running

https://www.theblockcrypto.com/linked/72697/doj-california-bitcoin-atm

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We live in amazing times. To be honest, this is the first time I've heard about illegal Bitcoin ATMs. Now Muhammad can get 30 years in prison for illegal mass adoption.

I wonder what will happen to ATMs and what is their number, I hope the state will appropriate it and allow people to use them with reduced commissions. 

Why he didn't cooperate with the government of California and get all needed requirement before putting up his bitcoin ATM machines so that it will not become illegal. It was a frustrating experience for Kais Mohammad and frustrating bitcoin mass adoption on that country.

[nnedigood]

These are the people that are sending bad signal trying to paint cryppto currency and blockchain business as illegal. Doing the right thing with a wrong method and wrong place will turn a good business as economic crime. He should have find out if the state financial law permits the installation of BTC ATM and whether Crypto currency transaction is legal. 30 yrs in the cool will re set his brain. Thanks for the info Bro.

[akram143]

A man in California has agreed to plead guilty to operating an illegal bitcoin ATM network that exchanged up to $25 million, according to a U.S. Department of Justice announcement on Wednesday.

Kais Mohammad, 36, who goes by the digital moniker  “Superman29,” was charged in the United States District Court on three counts: for operating an unlicensed money exchange business, for money laundering and for not being able to maintain an effective anti-money laundering program.

He purchased Bitcoin ATM-type kiosks which were placed in malls, gas stations and convenience stores in several California counties. These kiosks allowed customers to buy and sell Bitcoin in exchange for cash. Mohammad supplied the machines with cash that customers could withdraw and maintained the server software to keep the kiosks running

https://www.theblockcrypto.com/linked/72697/doj-california-bitcoin-atm

----

We live in amazing times. To be honest, this is the first time I've heard about illegal Bitcoin ATMs. Now Muhammad can get 30 years in prison for illegal mass adoption.

I wonder what will happen to ATMs and what is their number, I hope the state will appropriate it and allow people to use them with reduced commissions. 

Countries have different regulations for ATM even though bitcoin and cryptos are legal there, even in India it is literally not possible to have bitcoin ATM at the moment.So anyone who wants to have their own bitcoin ATM should take the legal advice from someone who knows the laws well to avoid such kind of scenario in their life.

[Asuspawer09]

A man in California has agreed to plead guilty to operating an illegal bitcoin ATM network that exchanged up to $25 million, according to a U.S. Department of Justice announcement on Wednesday.

Kais Mohammad, 36, who goes by the digital moniker  “Superman29,” was charged in the United States District Court on three counts: for operating an unlicensed money exchange business, for money laundering and for not being able to maintain an effective anti-money laundering program.

He purchased Bitcoin ATM-type kiosks which were placed in malls, gas stations and convenience stores in several California counties. These kiosks allowed customers to buy and sell Bitcoin in exchange for cash. Mohammad supplied the machines with cash that customers could withdraw and maintained the server software to keep the kiosks running

https://www.theblockcrypto.com/linked/72697/doj-california-bitcoin-atm

----

We live in amazing times. To be honest, this is the first time I've heard about illegal Bitcoin ATMs. Now Muhammad can get 30 years in prison for illegal mass adoption.

I wonder what will happen to ATMs and what is their number, I hope the state will appropriate it and allow people to use them with reduced commissions. 

I guess you could just put a bitcoin ATM at anyplace  , and sure no one is going to notice if it is a legitimate ATM or a licensed one.

Until someone from the government probably inspects the ATM and find out that it is not registered. Might be a clever way to do some money laundering and scam some bitcoin from the community.