A ATM operator in New York has been for operating an illegal business of “selling to individuals engaged in criminal activity.” “Robert Taylor allegedly went to great lengths to keep his bitcoin kiosk business private in order to attract customers willing to pay premium for anonymity,” the district attorney in charge described.

Operator of 46 Bitcoin ATMs Charged

Manhattan District Attorney Alvin Bragg Jr. announced Wednesday that Robert Taylor has been indicted for “operating an illegal bitcoin ATM business that sells to individuals engaged in criminal activity.”

The announcement stated:

Taylor operates bitcoin kiosks in at least 46 locations in New York City, mostly in laundromats, as well as locations in New Jersey and Miami.

The district attorney detailed that between 2017 and 2018, the 35-year-old “converted more than $5.6 million in customer cash into bitcoin while charging 10 to 20 percent fees.”

Taylor was charged with “multiple counts, including operating an unlicensed money transfer business, third-degree criminal tax fraud, and providing false paperwork to make a first-degree filing.”

“Robert Taylor allegedly went to great lengths to keep his Bitcoin kiosk business private in order to attract customers willing to pay premium prices for anonymity,” Bragg described, detailing:

As the use of cryptocurrencies such as Bitcoin proliferates, they continue to attract a variety of bad actors looking to evade law enforcement.

The announcement further states:

In total, a search warrant recovered $250,000 in cash from Taylor’s apartment, as well as 20 bitcoin ATMs containing $44,000 in cash.

Forensic analysis revealed that between September 2017 and November 2018, more than $5.6 million in cash was deposited into Taylor’s Bitcoin ATM. More than $590,000 was charged, and about $160,000 was deposited into Taylor’s personal account.

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However, Taylor reported only about $3,000 in income on her 2017 tax return and lost $140,000 on her 2018 tax return.

In addition, his business does not have a money transfer license or a virtual business license (Bitlicense) issued by the New York State of Financial Services (DFS). It is also not licensed by the . Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

tags in this story

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Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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