Bitcoin ATM Firm S&P Solutions Faces Charges for Money Laundering

S&P Solutions, a Bitcoin (BTC) technology firm which operates as Bitcoin of America and three of its executives have been charged for running unlicensed crypto kiosks in NorthEast Ohio, United. States.

According to media outlet News 5 Cleveland, over 50 crypto kiosks have been seized in connection to this matter with most of them sharing ties with some illegal activities. Intense investigations have begun and so far, up to 30 law enforcement agencies have indicated an interest in the case.

The 52 Bitcoin of America ATMs seized were from gas stations around neighborhoods in Lorain and Cuyahoga counties. Notably, the investigation has been steered by the U.S. Secret Service’s Cyber Fraud and Money Laundering Task Force. A Cuyahoga County grand jury is predicting over the case and has levied the four entities with several charge counts including money laundering and conspiracy.

“The investigation revealed, since 2018, Bitcoin of America has evaded numerous regulatory safeguards and financial compliance requirements in Ohio by misrepresenting the company’s role in transferring funds by cryptocurrency,” Blaine Forschen, the United States Secret Service special agent in charge said. “It was the pathway for money to go from the victims to the scammers, unregulated and unmonitored.”

Three Arrested in Connection to S&P Solutions

45-year-old Sonny Meraban who is the founder of S&P Solutions, his father and managing director of the firm Reza Meraban and their attorney William Suriano are the other three entities involved in the lawsuit. License requirement violation, taxation, possession of criminal tools, and stolen properties are also part of their offenses. 

Andrew Rogalski, the economic crime supervisor at the Cuyahoga County Prosecutor’s Office captured the extent of the present situation in his statement.

“We are dealing with a new industry of cryptocurrency but we are not dealing with new laws. Cryptocurrency is money. If you’re a money transmitter in the State of Ohio, you need to have a license. Bitcoin of America does not have a license.”

It is believed that crypto ATMs are becoming an increasing concern in terms of crypto theft, however, in the last twelve months the industry has suffered huge losses through various means including cross-bridge attacks and pig butchering. In 2022, over $3.5 billion was reported as losses in crypto attacks. Interestingly, a huge percentage of this figure was attributed to North Korean hackers.