- An illegal Bitcoin ATM operator has handed himself into police
- Robert Taylor helped criminals launder almost $6 million in bitcoin through his anonymous Bitcoin ATM racket
- Taylor faces decades in jail for his actions
A New York man who operated an illegal Bitcoin ATM service for over a year was arrested last week after handing himself in to police. Robert Taylor, 35, operated 46 Bitcoin ATMs across New York City, New Jersey, and Miami according to prosecutors, helping criminals launder over $5.6 million in bitcoin between 2017 and 2018 and taking a slice of each transaction. The Manhattan District Attorney’s Office charged Taylor with multiple counts of Operating an Unlicensed Money Transmission Business, Criminal Tax Fraud in the Third Degree, and Offering a False Instrument for Filing in the First Degree.
Taylor Prided Himself on Anonymity
District Attorney Alvin L. Bragg, Jr. explained in a press release that Taylor “sold his service based on complete anonymity of his clients”, telling them that his machines were the only ones that could preserve anonymity. The D.A.’s office alleges that Taylor’s business model attracted clients involved in criminal activity, with Taylor establishing fake social media accounts and using burner phones to ensure that the activity with his Bitcoin ATM ring did not come back to him.
Clients would pay “top dollar” for this anonymity, according to the D.A., with Taylor taking a 10% slice for his efforts. Taylor ran this scheme between September 2017 and November 2018, generating more than $590,000 in fees from over $5.6 million in deposits to his machines, approximately $160,000 of which was deposited into his personal bank accounts.
Despite this income, Taylor only claimed income of some $3,000 on his 2017 tax returns and a loss of $140,000 on his 2018 tax returns, among other false representations.
Police Investigation Led to Bitcoin ATM Seizures
Police got wind of Taylor’s activities and conducted surveillance on, leading to raids in which they seized $250,000 in cash from his apartment, as well as 20 Bitcoin ATMs containing $44,000 in cash. In order to operate his service, Taylor was supposed to register as a money transmitter, which would have included gaining a New York BitLicense.
Taylor faces decades in jail if found guilty, although it is likely he will cut a deal at the appropriate time.
