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Bitcoin ATM operator faces indictment for tax evasion, fraud

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April 19, 2022

Robert Taylor, a Bitcoin ATM operator based in New York City, was recently indicted for "operating an illegal bitcoin ATM business that he marketed towards individuals engaged in criminal activity," according to Alvin Bragg Jr., district attorney for Manhattan. Taylor is facing charges for criminal tax fraud, false instrument for filing and running an unlicensed money transmission business, according to a report by Bitcoin.com

Customers deposited more than $5.6 million into his ATMs between September 2017 and November 2018, and the company collected more than $590,000 in fees with Taylor personally depositing $160,000 into his back account. However, Taylor reported only $3,000 in income in 2017 and a loss of $140,000 in 2018.

"Robert Taylor allegedly went to great lengths to keep his bitcoin kiosk business as secret as possible to attract a clientele that would pay top dollar for anonymity," Bragg said.

In a raid on his apartment, law enforcement found $250,000 in cash as well as 20 Bitcoin ATMs containing $44,000.

"As the use of cryptocurrencies like bitcoin proliferate, they continue to attract a wide range of bad actors who are hoping to evade law enforcement," Bragg said.