Law enforcement officials have arrested Sonny Meraban, CEO of Bitcoin of America, along with his father, Reza Mehraban and attorney William Soriano, on suspicion of money laundering and Ohio ATM licensing violations. Authorities also seized more than 50 bitcoin ATMs in Ohio, according to a report by Fox 8.
“Cryptocurrency is money and if you’re a money transmitter in Ohio, you need to have a license. Bitcoin of America does not have a license,” Andrew Rogalski, assistant prosecutor, Cuyahoga County, Ohio, told the news outlet.
Prosecutors claim scammers used bitcoin ATMs as a ‘middleman’ to get money from victims. Bitcoin of America allegedly received approximately 20% of the money from each transaction.
“Because of Bitcoin of America’s lack of safeguards, criminals around the world have used the company to receive payments and illicit funds to criminals in the U.S. and across the world. Scammers, robocallers and international organized crime groups have capitalized on the company’s lack of compliance and licensing,” Blain Forshen, director of the Secret Service, Cleveland, told Fox 8.
