According to Cointelegraph, Crypto Dispensers, a Chicago-based Bitcoin ATM operator, is contemplating a potential $100 million sale as its founder faces federal money laundering charges. The company announced in a Friday press release that it has engaged advisors to conduct a strategic review and assess buyer interest. This move follows the firm's 2020 transition from physical ATMs to a software-driven model, aimed at addressing increasing fraud, compliance pressures, and regulatory scrutiny.
CEO Firas Isa described the sale review as part of the company's next growth phase, emphasizing the scalability offered by software over hardware. Despite the exploration of a sale, Crypto Dispensers indicated that it might continue operating independently, with no guarantee that any transaction will be finalized. The announcement comes shortly after the U.S. Department of Justice unsealed an indictment accusing Isa and the company of facilitating a $10 million laundering scheme. Prosecutors allege that between 2018 and 2025, Isa knowingly accepted proceeds from wire fraud and narcotics trafficking through the firm's ATM network, converting the funds into cryptocurrency and transferring them to wallets designed to obscure their origin.
Both Isa and Crypto Dispensers have pleaded not guilty to the conspiracy charge, which carries a maximum 20-year federal sentence. If convicted, the government could seize assets linked to the alleged scheme. Meanwhile, crypto ATMs are facing increased scrutiny from U.S. regulators and local governments due to rising concerns over fraud. The FBI reported nearly 11,000 scam complaints related to crypto kiosks in 2024, amounting to over $246 million, prompting lawmakers to examine the machines' anonymity and their role in facilitating illicit activities.
Cities are responding with bans and strict limits on crypto ATMs. In Stillwater, Minnesota, officials prohibited crypto kiosks after residents lost significant sums to scams, including a fake PayPal overpayment incident. Spokane, Washington, followed with a citywide ban in June, citing a surge in scams and labeling the machines as a preferred tool for scammers. Other jurisdictions are opting for restrictions rather than outright bans. Grosse Pointe Farms, Michigan, despite having no active crypto ATMs, imposed a $1,000 daily limit and a $5,000 two-week cap on future kiosk transactions to safeguard residents from potential fraud.
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