Founder of a Chicago cryptocurrency firm in a federal ten-million-dollar money laundering case
TOI GLOBAL DESK | TOI GLOBAL | Nov 20, 2025, 20:33 IST
Federal prosecutors have charged the founder of a Chicago cryptocurrency firm with conspiring to launder ten million dollars through crypto ATMs. Manhattan district attorney's office reports that the proceeds were taken from fraud and drug crimes. The defendant entered a not-guilty plea.
TL;DR
Chicago federal prosecutors have charged the co-founder of a crypto-related company with a $10 million illicit money laundering through a crypto ATM scheme. He pleaded not guilty, and the greatest penalty he would be able to face is jail for twenty years if the court found him guilty.
On Tuesday, federal prosecutors revealed an indictment against a Chicago cryptocurrency company founder in a money-laundering scheme involving a ten-million-dollar crime across crypto ATMs spanning the US. In essence, the indictment explains that the firm's criminal activities allowed offenders and defrauded victims to launder their illicit gains by utilizing what seemed like legitimate digital currency exchange channels.
According to the U.S. Attorney's Office for the Northern District of Illinois, Firas Isa, 36, a Frankfort resident, and his company Virtual Assets LLC, are each charged with one count of conspiracy to launder money. The local business, Crypto Dispensers, was focused on providing cash-to-cryptocurrency solutions, the news said, mentioning that kiosks across nine states were among the company’s facilities. The prosecutors elaborated that the ATMs created an opportunity for users to easily turn cash, a check, or any other type of monetary instrument into cryptocurrency.
In a publicly released statement, U.S. Attorney Andrew Boutros pointed out the federal allegations that Isa was a willing accomplice who facilitated a number of transactions related to wire fraud and drug trafficking. Prosecutors seek to establish that the money laundering activities involved a minimum of $10 million worth of wire fraud and drug trafficking which flowed through the company's ATM and related services. After the cash was paid in, Isa turned the money into cryptocurrency and sent it to anonymous wallets, as per the indictment, which hid not only the source of the money but also the owner of the assets.
The indictment claims Isa purposely knew the funds were the fruits of illegal activities. Besides that, it is also inferred in the indictment that a co-conspirator was facilitating the operations while law enforcement hasn't yet revealed the identity of that individual. According to statements from the federal law enforcement, fraud victims who wanted to launder their money through these ATMs were as well involved in this network of scams. As part of the plot, the fraudsters presumably gave instructions that the victims send money through the machines.
The records submitted to federal court convey the thoroughness of the efforts to trace the transactions, which included documentation of money exchange and wallet transfers. An official acquainted with the probe but who declined to be named because the matter is still ongoing, said that financial analysts and cybercrime experts from the Department of Justice carried out the examination of the company’s operations and came to the conclusion that Isa illegally allowed it. The official called this case a demonstration of a broader federal initiative in which agencies scrutinize cryptomerchant businesses that flout AML regulations.
Isa and Virtual Assets LLC collectively denied the charges by a plea of not guilty. According to court documents, Isa is scheduled for a status hearing on January 30, 2026, at which he is required to attend. The defendant's denial of the charges and intention to refute them at trial were emphasized by a representative of the Isa legal team, who also insisted that the company was functioning as a regulated exchange service.
Should Isa be found guilty, he is liable to up to two decades in a federal prison. This case is going to trial by the U.S. Attorney's Office with the help of federal investigators who specialize in financial crimes and virtual asset tracking.
FAQs
Chicago federal prosecutors have charged the co-founder of a crypto-related company with a $10 million illicit money laundering through a crypto ATM scheme. He pleaded not guilty, and the greatest penalty he would be able to face is jail for twenty years if the court found him guilty.
On Tuesday, federal prosecutors revealed an indictment against a Chicago cryptocurrency company founder in a money-laundering scheme involving a ten-million-dollar crime across crypto ATMs spanning the US. In essence, the indictment explains that the firm's criminal activities allowed offenders and defrauded victims to launder their illicit gains by utilizing what seemed like legitimate digital currency exchange channels.
According to the U.S. Attorney's Office for the Northern District of Illinois, Firas Isa, 36, a Frankfort resident, and his company Virtual Assets LLC, are each charged with one count of conspiracy to launder money. The local business, Crypto Dispensers, was focused on providing cash-to-cryptocurrency solutions, the news said, mentioning that kiosks across nine states were among the company’s facilities. The prosecutors elaborated that the ATMs created an opportunity for users to easily turn cash, a check, or any other type of monetary instrument into cryptocurrency.
In a publicly released statement, U.S. Attorney Andrew Boutros pointed out the federal allegations that Isa was a willing accomplice who facilitated a number of transactions related to wire fraud and drug trafficking. Prosecutors seek to establish that the money laundering activities involved a minimum of $10 million worth of wire fraud and drug trafficking which flowed through the company's ATM and related services. After the cash was paid in, Isa turned the money into cryptocurrency and sent it to anonymous wallets, as per the indictment, which hid not only the source of the money but also the owner of the assets.
The indictment claims Isa purposely knew the funds were the fruits of illegal activities. Besides that, it is also inferred in the indictment that a co-conspirator was facilitating the operations while law enforcement hasn't yet revealed the identity of that individual. According to statements from the federal law enforcement, fraud victims who wanted to launder their money through these ATMs were as well involved in this network of scams. As part of the plot, the fraudsters presumably gave instructions that the victims send money through the machines.
The records submitted to federal court convey the thoroughness of the efforts to trace the transactions, which included documentation of money exchange and wallet transfers. An official acquainted with the probe but who declined to be named because the matter is still ongoing, said that financial analysts and cybercrime experts from the Department of Justice carried out the examination of the company’s operations and came to the conclusion that Isa illegally allowed it. The official called this case a demonstration of a broader federal initiative in which agencies scrutinize cryptomerchant businesses that flout AML regulations.
Isa and Virtual Assets LLC collectively denied the charges by a plea of not guilty. According to court documents, Isa is scheduled for a status hearing on January 30, 2026, at which he is required to attend. The defendant's denial of the charges and intention to refute them at trial were emphasized by a representative of the Isa legal team, who also insisted that the company was functioning as a regulated exchange service.
Should Isa be found guilty, he is liable to up to two decades in a federal prison. This case is going to trial by the U.S. Attorney's Office with the help of federal investigators who specialize in financial crimes and virtual asset tracking.
FAQs
- What company is involved?
Virtual Assets LLC operated as Crypto Dispensers. - Next court day?
The federal status hearing will be held as scheduled on January 30, 2026.