Kais Mohammed has known online by his business name, “Superman29,” which operated an unlicensed bitcoin to cash exchange firm. He operated this firm by using Bitcoin ATMs, which he called “Herocoin,” darknet markets and person to person transactions.
He will plead guilty to charges of money laundering, operating an unlicensed exchange company, and not maintaining an anti-laundering program. This is due to the main fact that most of the funds which are exchanged through his firm are mainly from criminal activities, but Mohammed does not bother about the source of the funds. Also, transactions which are expected to have been reported to the necessary regulatory body, but have not been duly reported.
He started operating his firm from December 2014 unlicensed until July 2018 when he was contacted by U.S Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Even though registering his company, Mohammed never adheres to the regulations of FinCEN, and he operated his firm until November 2019.
Mohammed has laundered up to $15 million to $25 million from different clients and sources through darknet markets and his ATMs point, which is usually located around gas stations, convenience centers, and malls in Orange, Riverside, San Bernardino, and Los Angeles counties.
Undercover agents were used to conducting an investigation into his activities. The agents conducted a lot of illegal exchange on the ATMs, but these transactions were never reported not to be in compliance with FinCEN regulations. When one of the agents also did an exchange of a sum of $16,000 for Bitcoin and which he reportedly said has been gotten from illegal activities, yet these transactions were never reported.
These transactions and non-compliance to FinCEN regulations have to lead to the arrest of Kais Mohammed, and he is suddenly found to be guilty of a one-count charge for running an unlicensed money exchange business, one count for money laundering and one count for non-compliance with FinCEN regulations by not maintaining an anti-laundering exchange. He now faces a 30-year sentence and a forfeit of his 17 Bitcoin ATMs, cryptocurrency, and cash.