Suspect charged with running dozens of unlicensed cryptocurrency ATMs
CLEVELAND (WJW) – For scammers, cryptocurrency is now the best way to get their money.
At a press conference Thursday morning, prosecutors in Cleveland said kiosks operated by Bitcoin of America acted as a middleman that made it easy for fraud victims to lose millions of dollars.
“Cryptocurrency is money, and if you’re a money transmitter in Ohio, you have to have a license. Bitcoin of America doesn’t have a license,” Cuyahoga County Assistant Prosecutor Andrew Rogalski said.
Three men were arrested, including Bitcoin of America CEO Sonny Meraban, in Miami, Florida, his father, Reza Mehraban, and their lawyer, William Soriano, who both live in the Chicago area.
They face dozens of counts of money laundering, conspiracy and numerous Ohio ATM license violations.
More than 50 Bitcoin of America ATMs were seized across Cuyahoga and Lorain counties.
Prosecutors say the machines were often, and in some cases exclusively, used as intermediaries between fraudsters and their victims. All the while, prosecutors say Bitcoin of America took 20% of the top of each illegal transaction.
“Due to Bitcoin of America’s lack of security measures, criminals around the world have used the company to receive payments and illicit funds for criminals in the United States and around the world. Fraudsters, robocallers and international organized crime groups have taken advantage of the company’s lack of compliance and licensing , said Cleveland Secret Service Director Blaine Forshen.
The Secret Service also says the company’s lack of licensing and compliance with the law allowed funds taken from Northeast Ohio to go to criminal groups in Russia and to neo-Nazi groups.
County prosecutors say at least eight victims have been identified here in Northeast Ohio, but they believe there are many more. They encourage them to come forward.
“They should do two things: file a police report with their local police department and two, go to the FTC website, as I mentioned with my comments, to file their database and make a complaint that will get the ball rolling. ” Forshen said.
Prosecutors say the company may still have other unlicensed cryptocurrency ATMs in other Ohio counties.
They say these machines should not be used because they are not legal in Ohio.
The Secret Service says Bitcoin of America has approximately 2,500 ATMs in 31 states.
