United States authorities have indicted Chicago-based crypto ATM operator Virtual Assets LLC and its founder, Firas Isa, on money laundering charges. Prosecutors say the scheme involved $10 million in proceeds from fraud and narcotics.
Isa and his company operated Crypto Dispensers, which offered cash-to-cryptocurrency conversion services across the U.S. While running a crypto ATM business is legal, prosecutors claim Isa knowingly converted illicit funds into cryptocurrency to hide their origin.
“After the proceeds were sent, Isa converted the cryptocurrency and transferred it to virtual wallets to disguise the true source and ownership,” the U.S. Department of Justice said.
Isa and Virtual Assets LLC have pleaded not guilty. If convicted, both could face up to 20 years in prison.
Crypto ATMs are kiosks that allow users to buy or sell digital assets using cash. Their ease of use and minimal verification requirements make them attractive for criminals, who exploit them to move funds quickly and anonymously.
Authorities in the U.S. and abroad have increased regulation of crypto ATMs. Some states have imposed strict oversight, and certain jurisdictions have banned the machines entirely.
Isa’s indictment follows other federal crackdowns on crypto crime. Last year, prosecutors in Boston indicted Aleksei Andriunin, founder of Gotbit, for wire fraud and market manipulation. Nine individuals were also charged for involvement in a crypto-powered money laundering network linked to international drug cartels.
