SANTA ANA, Calif. (AP) — A Southern California man who pleaded guilty to illegally operating kiosks where customers could buy Bitcoin with cash, or sell Bitcoin in exchange for cash has been sentenced to two years in federal prison.
Kais Mohammad of Yorba Linda pleaded guilty last year to operating an unlicensed virtual currency business and laundering between $15 million and $25 million in Bitcoin and cash over a five-year period.
Prosecutors say his company Herocoin offered exchanges through kiosks placed in shopping malls, gas stations and convenience stores throughout the region. They say he knew that some of the customers' funds came from illegal activity.
