Feds Bust Crypto ATM CEO in $10 Million Money Laundering Operation
Firas Isa, 36, founder and CEO of Virtual Assets LLC, also known as Crypto Dispensers, has been charged with one count of money-laundering conspiracy. The indictment, unsealed in the Northern District of Illinois, alleges that Isa and his company moved at least $10 million in fraud and drug proceeds through a nationwide crypto kiosk network between 2018 and 2025. Virtual Assets LLC operated cash-to-crypto exchanges via ATMs and bank accounts, allowing users to deposit cash, checks, or wired funds to convert into digital assets.
Prosecutors state that the proceeds were converted to cryptocurrency and sent to external wallets to obscure their origin, and Isa allegedly knew that the funds derived from wire-fraud schemes and narcotics trafficking. Isa and the company have pleaded not guilty. A status hearing is set for January 30, 2026, in Chicago before Judge Elaine E. Bucklo. A forfeiture notice seeks property tied to the crimes, including a personal money judgment, and if assets cannot be recovered, substitute property may be pursued. The indictment is an allegation, and the defendants are presumed innocent.
Regulatory scrutiny is increasing around crypto ATMs amid a spike in scams. In Washington, DC, for example, Athena Bitcoin was sued after 93% of deposits were linked to scams involving elders and undisclosed fees up to 26%. FBI data reveal nearly 11,000 crypto-ATM-related complaints in 2024 totaling over $246 million. The FTC reported losses rising from $12 million in 2020 to $114 million in 2023, with most victims aged 60 or older and median losses for this group reaching $10,000.
Legislative efforts include Senator Durbin’s Crypto ATM Fraud Prevention Act, proposing caps on transactions, mandatory direct user contact for large transfers, and refunds for some fraud victims. Actions addressing the issue have taken place in Wisconsin and Spokane, while New Zealand has banned crypto ATMs and Australia has tightened regulations, choosing not to renew licenses for some operators.
