US authorities reported this Wednesday (1st) the arrest of three people associated with the Bitcoin of America company. In addition, 52 Bitcoin ATMs, also referred to as “kiosks”, were seized.
The operation was supported by dozens of US agencies, including the FBI and the US Secret Service.
The company’s CEO, Sonny Meraban, was charged with money laundering, conspiracy, license violations and other crimes. Under the same charges, the other two arrested were Meraban’s father and the company’s attorney, William Suriano. One of the arrests took place in Florida, the other in Chicago, both US states.
According to the Coin ATM Radar website, there are more than 33,000 Bitcoin ATMs in the US alone, not counting other conversion services. Therefore, the closure of Bitcoin of America should not affect consumers of such machines.
US prosecutors speak out about Bitcoin of America’s arrest and closure
At a conference this Thursday (2), prosecutors on the case explained that the operation was complex. Michael O’Malley, who was in charge of the investigation, even laughed as he thanked all the agencies that contributed to the case.
“This operation was huge and involved 29 branches”said attorney Michael O’Malley, who thanked the US Secret Service, the FBI, the Treasury Department’s Crime Division and dozens of other agencies for their cooperation.
Following this, Andrew Rogalski gave more details about the arrests. According to the deputy prosecutor, 52 ATMs were seized during the operation, 41 in Cuyahoga County and 11 in Lorain County.
“We are dealing with a new industry with cryptocurrencies, but we are not dealing with new laws. The same laws and legal theories apply to these companies as to all others.”completed Andrew Rogalski, Deputy Prosecutor.
“Cryptocurrencies are money and if you transfer money in Ohio, you need a license. Bitcoin of America was not licensed.”
Finally, Rogalski explains that the machines were used by scammers, who converted dollars into Bitcoin and sent the cryptocurrency to their addresses, while Bitcoin of America kept 20% of the transaction.
“If Bitcoin of America had been a licensed company, like any other reputable institution, they could have avoided these transactions”concluded Rogalski.
A US Secret Service agent also commented on the case.
Another agent who commented on the case was Blaine Forschen. According to the secret service agent, there are thousands of ATMs in his country and his agency is responsible for ensuring the financial security of his citizens and his country.
“Many link the Secret Service to presidential protection missions”said Blaine Forschen of the Secret Service. “However, our agency was established 150 years ago to combat widespread counterfeiting across the country to ensure that our economy and the integrity of our financial infrastructure are safe.”
“Investigating these financial crimes is seeking justice for the victims, that’s what we do.”
In the end, Bitcoin of America operated for years until charges were filed and the CEO arrested. According to Forschen, more than 300 complaints have been registered against the company during that period.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
