Case Mohammad, a 36-year-old inhabitant of Yorba Linda in California who dubbed himself “Superman 29”, admitted the government’s accusations in the management of Herocoin, an unauthorized company for cryptographic money management, which traded up to $25 million through personal exchanges and the Bitcoin ATM system (BTC). Among the clients of this man, who rewarded the committee up to 25% for their administrations, were fraudsters who used his business to launder money.
“Superman 29”, formerly a representative of the bank, conducted his business between December 2014 and November 2019, promoting his activities on the Internet and attracting exchanges of up to $25,000, said in a communication from the US Department of Justice.
This included the fact that during the “exchange at the factory” he met clients on the open site and exchanged money for them. Muhammad mostly asked no questions about the source of the clients’ assets and the numerous events he had carried out. I realized that the assets were the return of the crime. Muhammad admitted that he knew that in any case one of Herocoin’s clients was engaged in criminal behavior in a faint network”.
As his business developed, Muhammad later purchased and published on the Internet a system of bitcoin ATM stands located in shopping malls, service stations and residential areas in the provinces of Los Angeles, Orange, Riverside and San Bernardino. These outlets allowed their customers to use the money to buy and sell bitcoins in exchange for money that was nearby.
“Mohammed processed the cryptocurrency deposited in the machines, supplied the machines with cash, which the clients will be filming, and supported the server software that manages the machines” – said in the application.
The US Treasury’s Financial Crimes Oversight Network (Fincen) contacted Mohammed in July 2018 to request registration. “Superman 29” complied, but he continued to violate US rules on money laundering and financial inspection. In 2019, he agreed to exchange money for undercover agents posing as patrons of the karaoke bar. The agents told Muhammad that they hired South Korean women, “who entertained men in various ways, including participation in sexual activity”. Since he agreed to exchange cash received as a result of illegal activities, “Superman 29” provided law enforcement agencies with irrefutable evidence.
“Muhammad was charged with trilateral criminal information and agreed to plead guilty to one count for operating an unlicensed money transfer business, one count for money laundering and one count for refusing to support an effective anti-money laundering programme, the Division said. After pleading guilty, Muhammad faces a maximum penalty of 30 years in federal prison. As part of the plea agreement, Mohammed agreed to lose cash, cryptocurrency, and 17 Bitcoin Atms, which he managed as part of his business”.