Crypto ATM Operator and CEO Indicted for Alleged $10M Laundering of Fraud

Virtual Assets LLC and its CEO, Firas Isa, are accused of laundering $10 million through crypto ATM transactions.

Prosecutors claim Isa used the ATM network to convert illicit cash into cryptocurrency and obscure the funds’ origins.

The case is part of a broader federal effort to target crypto-related financial crimes and strengthen oversight of crypto ATMs.

Federal authorities have charged Chicago-based Virtual Assets LLC and its founder, Firas Isa, with laundering over $10 million in funds connected to fraud and narcotics activities. The U.S. Department of Justice announced the indictment, which claims Isa used cryptocurrency ATMs to help convert criminal proceeds into digital assets. Prosecutors allege that Isa processed illegal funds through his business operations while attempting to conceal their true origin.

Alleged Use of Crypto ATMs to Move Criminal Proceeds

Virtual Assets LLC operates under the name Crypto Dispensers, a company offering cash-to-crypto conversion services across the United States. Prosecutors say Isa used this platform to handle money tied to illegal activity. Between 2018 and 2023, Isa allegedly received cash from individuals connected to fraud and hard drugs.

After receiving the funds, he reportedly converted the money into cryptocurrency using the company’s ATM network. The funds were then transferred to virtual wallets, which authorities say helped cover the actual source and ownership of the money.

Company Pleads Not Guilty, Faces Up to 20 Years

Both Isa and Virtual Assets LLC have entered a plea of not guilty. However, if convicted, they could face a maximum prison sentence of 20 years. The Department of Justice stated that Isa played a direct role in handling and processing the transactions.

Officials confirmed that the ATM network operated in multiple public spaces and offered minimal identity checks. This structure, according to prosecutors, enabled faster and more discreet transactions, making it easier for illicit funds to pass undetected.

Crypto ATMs Draw Regulatory Scrutiny Nationwide

Although crypto ATM operations remain legal in the U.S., the devices have come under increasing regulatory pressure. Authorities claim bad actors frequently exploit the machines due to their speed and limited verification requirements. Many states have imposed new rules to control their use, while some jurisdictions have implemented outright bans.

The accusation comes as part of a continued law enforcement effort by U.S. authorities on crypto-related financial crimes. In recent months, federal prosecutors have pursued several critical cases involving cryptocurrency. These include charges filed against the founder of a market-making firm and nine individuals tied to an international laundering network. Investigators say the enforcement actions are intended to stop the misuse of cryptocurrency platforms to disguise unlawful activities and disrupt major financial crimes in the country.