Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals – In New York, a bitcoin ATM operator was charged with operating an illegal business marketed toward those involved in criminal activity. “Robert Taylor reportedly went to considerable measures to make his bitcoin kiosk business as secret as possible in order to attracts clients willing to pay top money for anonymity,” the prosecutor said.
Alvin Bragg Jr., Manhattan District Attorney indicted Robert Taylor on Wednesday for “running an illegal bitcoin ATM business which he targeted towards individuals involved in criminal activities.”
According to the announcement:
“At New York City, Taylor had bitcoin kiosks in at least 46 locations, many of which were laundromats, and also in New Jersey and Miami.”
The 35-year-old “turned more than $5.6 million of his customers’ cash into bitcoin whilst charging fees of between 10% and 20% between 2017 and 2018,” according to the district attorney.
Taylor is charged with several counts of operating an unregistered money transmission business, offering a fraudulent document for filing, and criminal tax fraud in the third degree.”
“Robert Taylor allegedly went to great lengths to make his bitcoin kiosk business as secret as possible so as to draw a customer that would pay top money for anonymity,” Bragg explained. “As the use of cryptocurrencies such as bitcoin develops in popularity, they continue to draw a wide range of undesirable people looking to circumvent the law.”
According to forensic analysis, more than $5.6 million in cash was transferred into Taylor’s bitcoin ATMs between September 2017 and November 2018. More than $590,000 was paid in fees, with roughly $160,000 going directly into Taylor’s personal bank accounts.
Taylor, on the other hand, only reported a $3,000 profit in 2017 and a $140,000 loss in 2018. He was also denied a money transmission license and a virtual currency corporation license by the New York State Department of Financial Services. It is also not licensed by the US Department of Treasury’s Financial Crimes Enforcement Network.