News

New York Man Charged With Running Unlicensed Bitcoin ATMs That Sold $5.6M in BTC

The Manhattan District Attorney’s office has charged a man with running dozens of unlicensed Bitcoin ATMs across New York City, New Jersey and Miami. 

New York Man Charged With Running Unlicensed Bitcoin ATMs That Sold $5.6M in BTC

Prosecutors say 35-year-old New York resident Robert Taylor operated a total of 46 Bitcoin ATMs across three cities and sold $5.6 million Bitcoin between 2017 and 2018. He took transaction fees of between 10–20%.

Taylor is accused of promising ATM users that his machines didn’t use cameras or require identity, in posts on social media. These promises attracted customers who had recently committed felonies. 

Taylor surrendered yesterday, according to a statement given to Reuters by a spokesperson for the DA’s office. He is charged with tax fraud, false filings, and running an unlicensed money transmitter.

“Robert Taylor allegedly went to great lengths to keep his Bitcoin kiosk business as secret as possible to attract a clientele that would pay top dollar for anonymity,” said Manhattan District Attorney Alvin Bragg Jr. in a press release. “As the use of cryptocurrencies like Bitcoin proliferate, they continue to attract a wide-range of bad actors who are hoping to evade law enforcement.” He added that, “we will not allow digital currencies to become safe havens for illegal activity.”

Bitcoin ATMs and the law

New York Man Charged With Running Unlicensed Bitcoin ATMs That Sold $5.6M in BTC

Bitcoin ATMs are not illegal provided they adhere to local tax and licensing regulations. However, authorities have repeatedly linked them to money laundering and other criminal activities.

In December last year The United States Government Accountability Office released a report detailing the role Bitcoin ATMs may play in human and drug trafficking.

The report argued that Bitcoin ATM providers are not required to routinely report the locations of their kiosks. This is a potential blind spot for federal agencies looking to identify kiosks in areas that are at high risk of financial crimes and human and drug trafficking. 

The report adds that the appeal of exploiting Bitcoin ATMs for criminal purposes is heightened when ATM providers opt out of collecting users’ identity information 

The report also cites the FBI, which said there has been “an increase in the use of virtual currency kiosks for illicit purposes,” including human and drug trafficking.

In March, the UK’s Financial Conduct Authority ordered all Bitcoin ATMs in the country to shut down. The FCA stated: “None of the crypto asset firms registered with us have been approved to offer crypto ATM services, meaning that any of them operating in the UK are doing so illegally and consumers should not be using them.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

2 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

4 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

5 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

8 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

11 hours ago

This website uses cookies.