A California man who admitted to operating an unlicensed virtual currency business and laundering millions in bitcoin and cash, has been sentenced to two years in a US federal prison.
Kais Mohammad, 37, of Yorba Linda, pleaded guilty to operating an unlicensed money transmitting business, money laundering and failing to maintain an effective anti-money laundering program in September 2020, according to the US Attorney’s Office, the Orange County Register reported.
Mohammad owned and operated an illegal virtual-currency money services business called Herocoin.
He operated the business from December 2014 to November 2019, and offered bitcoin-cash exchange services, according to a spokesman for the US Attorney’s Office.
He charged commissions of up to 25 per cent, well above the market rate.
Mohammed operated kiosks at various malls, gas stations and convenience stores throughout Southern California.