{"id":19160,"date":"2023-03-27T02:45:21","date_gmt":"2023-03-27T02:45:21","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-seizes-18-crypto-atms-purchased-using-fraudulent-sba-loans-arrests-owner-regulation-bitcoin-news\/"},"modified":"2023-03-27T02:45:21","modified_gmt":"2023-03-27T02:45:21","slug":"us-seizes-18-crypto-atms-purchased-using-fraudulent-sba-loans-arrests-owner-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-seizes-18-crypto-atms-purchased-using-fraudulent-sba-loans-arrests-owner-regulation-bitcoin-news\/","title":{"rendered":"US Seizes 18 Crypto ATMs Purchased Using Fraudulent SBA Loans \u2014 Arrests Owner \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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U.S. law enforcement has seized 18 cryptocurrency ATMs that were purchased using fraudulent loans from the Small Business Administration (SBA) meant to assist small businesses financially harmed by the Covid-19 pandemic. The loans were also used to purchase bitcoin from a New York-based cryptocurrency exchange, said the U.S. Department of Justice (DOJ).<\/strong><\/p>\n

Coindawg\u2019s Crypto ATMs Seized<\/h2>\n

The U.S. Department of Justice (DOJ) announced on Thursday that Charles Riley Constant, aka Chuck Constant, has been arrested \u201cfor charges in connection with a scheme to steal and launder over $1 million in fraudulently obtained loans from the Small Business Administration (SBA), including the use of fraud proceeds to purchase cryptocurrency ATMs.\u201d The Justice Department detailed:<\/p>\n

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Law enforcement agents seized, among other things, 18 cryptocurrency ATMs in Texas and Oklahoma that Constant purchased with fraud proceeds to start a cryptocurrency ATM business named \u2018Coindawg LLC,\u2019 as well as Coindawg\u2019s website.<\/p>\n<\/blockquote>\n

The DOJ explained that Constant and his co-conspirators created fake identities and businesses to obtain seven Economic Injury Disaster Loans from the SBA beginning in the fall of 2020. The funds were meant to assist small businesses financially harmed by the Covid-19 pandemic.<\/p>\n

Constant used about $700,000 of the fraudulently obtained SBA loans to purchase bitcoin (BTC<\/a>) from a cryptocurrency exchange headquartered in New York City, the DOJ further noted.<\/p>\n

The Department of Justice continued:<\/p>\n

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To date, Coindawg has exchanged over $3,000,000 worth of cryptocurrency and charged 15% in transaction fees.<\/p>\n<\/blockquote>\n

Constant, 54, of Allen, Texas, has been charged with one count of conspiracy to commit money laundering, one count of theft of public money, and one count of interstate receipt of stolen money. If convicted, he faces a maximum sentence of 20 years in prison for conspiracy to commit money laundering and 10 years each for theft of public money and interstate receipt of stolen money.<\/p>\n

What do you think about this case? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found 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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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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