HomeCrypto NewsBitcoin ATM Company Considers $100 Million Sale After Federal Indictment Against CEO

Bitcoin ATM Company Considers $100 Million Sale After Federal Indictment Against CEO

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Crypto Dispensers, a Chicago-based operator of Bitcoin ATMs, is considering a possible $100 million sale as its founder faces federal money laundering charges.

In a press release Friday, the corporate said it has hired consultants to conduct a “strategic review” and explore buyer interest. Crypto Dispensers mentioned the switch from physical ATMs to a software-driven model in 2020, a switch said to be intended to counter increasing fraud, compliance pressures and regulatory scrutiny.

CEO Firas Isa described the sales review as a part of the corporate's next phase of growth. “The hardware showed us the ceiling. The software showed us the extent,” he said.

The crypto ATM operator noted that it might proceed to operate independently depending on the final result. There can be no guarantee that a transaction can be accomplished.

Top 10 Crypto ATM Operators. Source: CoinATMRadar

The CEO of Crypto Dispensers is accused of cash laundering

The potential sales probe was announced days after the U.S. Department of Justice unsealed an indictment accusing Isa and the corporate of supporting a $10 million money laundering scheme.

Prosecutors alleged that between 2018 and 2025, Isa knowingly accepted proceeds from wire fraud and drug trafficking through the corporate's ATM network. Despite the KYC requirements, the DOJ claims he converted the funds into cryptocurrency and moved them to wallets designed to disguise their origins.

Both Isa and Crypto Dispensers have pleaded not guilty to at least one count of conspiracy, which carries a maximum penalty of 20 years in federal prison. If convicted, the federal government could seize assets related to the alleged scheme.

US cities are cracking down on crypto ATMs

Cryptocurrency ATMs are coming under increasing pressure from US regulators and native governments as fears of fraud grow. The FBI reported nearly 11,000 fraud complaints related to crypto kiosks in 2024 with a complete value of greater than $246 million, prompting lawmakers to query the machines' anonymity and their role in enabling criminal activity.

Cities are actually reacting with bans and strict limits. In Stillwater, Minnesota, officials banned crypto kiosks after several residents lost 1000’s of dollars to scams, including an incident involving a fake PayPal “overpayment.”

Spokane, Washington, followed suit in June with a citywide ban, citing an increase in scams and calling the machines a “favorite tool for fraudsters.”

Other jurisdictions are choosing restrictions slightly than outright bans. Although Grosse Pointe Farms, Michigan, doesn’t have any energetic crypto ATMs, it has implemented a $1,000 every day limit and a $5,000 biweekly cap on future kiosk transactions to guard residents from potential fraud.

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