Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
US Seizes 18 Crypto ATMs Bought Using Fake SBA Loans – Arrests Owner – Regulation Bitcoin News
US law enforcement has seized 18 cryptocurrency ATMs that were purchased using bogus Small Business Administration (SBA) loans meant to help small businesses financially damaged by the Covid-19 pandemic. The loans were also used to buy bitcoin from a New York-based cryptocurrency exchange, the US Department of Justice (DOJ) said.
Coindawg’s crypto ATMs seized
The US Department of Justice (DOJ) announced Thursday that Charles Riley Constant, also known as Chuck Constant, has been arrested “on charges related to a scheme to steal and launder over $1 million in fraudulently obtained Small Business Administration (SBA) loans , including using fraudulent proceeds to purchase cryptocurrency ATMs.” The Ministry of Justice said in detail:
Among other things, law enforcement agents seized 18 cryptocurrency ATMs in Texas and Oklahoma that Constant bought with fraudulent proceeds to start a cryptocurrency ATM business called ‘Coindawg LLC’, as well as Coindawg’s website.
The DOJ explained that Constant and his co-conspirators created false identities and businesses to obtain seven SBA financial loss disaster loans starting in the fall of 2020. The funds were intended to help small businesses financially damaged by the Covid-19 pandemic.
Constant used about $700,000 of the fake SBA loans to buy bitcoin (BTC) from a cryptocurrency exchange headquartered in New York City, the DOJ further noted.
The Ministry of Justice continued:
To date, Coindawg has exchanged over $3,000,000 worth of cryptocurrency and charges 15% in transaction fees.
Constant, 54, of Allen, Texas, has been charged with one count of conspiracy to commit money laundering, one count of theft of public money and one count of interstate receiving stolen money. If convicted, he faces a maximum sentence of 20 years in prison for conspiracy to commit money laundering and 10 years each for theft of public money and interstate receipt of stolen money.
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