A BTC technology company and executives have been tested for illegally operating data encryption kiosks that knowingly profit from victims of digital currency fraud.

S & P Index Solutions, which operates under the US bitcoin name, and three executives are facing charges of money laundering, negotiation and other crimes related to the operation of more than 50 unlicensed data encryption service kiosks in the state.

A grand jury in Cuyahoga county returned civil indictments against the company, its user and founder, Sonny Melaban, its director, Reza Melaban, and the company's mentor, Sperry Suriano, on March 1. The trio were arrested last week and issued search warrants on their homes in California and New York.

According to prosecutor McGinnis Rojalski, romantic fraudsters, administrative law enforcement parodies and "intelligent robot callers" take advantage of the lack of compliance protection in the company's system. to remove money from a customer's encrypted data wallet.

Rojalski commented at a news conference that the ATM was prepared for fraudsters, adding:

"the victim is usually the elderly or other vulnerable people, who can directly use the bitcoin in the ATM in the United States to withdraw money from his bank card account or 401k account."

Then we were marked to put money in the ATM in exchange for bitcoin in their wallet, which they thought was theirs, but out of control, he explained.

On one occasion, an old man lost $11250 to one of the unsafe kiosks in three transactions in less than an hour, he added.

In addition, it is reported that the company deducts 20% of the transfer cost every time such a thing happens, even after learning that the transfer is fraudulent.

According to a report by Law360 on March 3, the civil complaint also alleges that the company was able to operate because it "submitted false written statements to the government about the nature of its business" to assist the company in operating self-service kiosks without any transfer permits.

The government seized 52 bitcoin ATMs last week, but the company also has many bitcoin ATMs in live boxes and other states. In 2021, U. S. bitcoin made a profit of $3.5 million from the savings of some illegal kiosks, Mr. Rojalski said.

Officials feel that the company has been operating and evading financial compliance rules for regulatory security services since 2018.

It is reported that the investigation and analysis of the company and senior executives is led by the cyber fraud and money laundering team of the Chinese Ministry of National Security.

In October, the office of the Miami remote Company of the Federal Bureau of investigation warned that data encryption ATMs are becoming a popular tool for fraudsters and victims of fraud, and the trend of "pig slaughtering" fraud is becoming more and more serious.