In short
- Prosecutors accused Firas Isa, founder of Virtual Assets LLC, of running a money laundering conspiracy worth at least $10 million.
- According to the indictment, Isa converted fraud and narcotics proceeds into cryptocurrency and sent the assets to other wallets.
- Isa and the company pleaded not guilty, with a status hearing set for January 30, 2026.
The U.S. Department of Justice on Tuesday accused the founder of a Chicago-based crypto ATM company of raking in at least $10 million in criminal proceeds and stashing the money in digital wallets to conceal its origins.
The indictment, unsealed in the Northern District of Illinois, accused Firas Isa of running the operation through Virtual Assets LLC, a company that did business as Crypto Dispensers and operated cash-to-cryptocurrency ATMs in the United States.
According to the complaint, victims and criminals sent the money to Isa, his company or a co-conspirator. While Bitcoin ATMs are supposed to institute a know-your-customer (KYC) policy to combat money laundering through the machines, prosecutors said Isa converted the illicit money the Crypto Dispensers ATMs received into cryptocurrency before transferring it to other wallets.
“The indictment alleges that Isa knew the money was derived from fraud,” the DOJ wrote.
The DOJ did not say in the indictment which cryptocurrencies or wallet providers were allegedly used by Isa in the scheme. Isa did not immediately respond to a request for comment from Declutter.
Isa and Virtual Assets LLC were each charged with one count of money laundering, a charge that carries a maximum prison sentence of 20 years. Both entered not guilty pleas. A status hearing was scheduled for January 30, 2026, before U.S. District Judge Elaine Bucklo.
The indictment comes as federal prosecutors are changing their approach to overseeing the crypto market. In April, the Justice Department said it would disband its National Cryptocurrency Enforcement Team and stop bringing criminal cases against exchanges, mixing services or cold wallet holders over the actions of their users. Last week, the DOJ, FBI and US Secret Service announced a new Scam Center Strike Force aimed at combating crypto scams that originated in China.
Prosecutors noted that the charges against Isa and Virtual Assets are an accusation, and they are presumed innocent unless the government proves guilty beyond a reasonable doubt.
If Isa or Virtual Assets LLC were convicted, they would have to forfeit any property involved in the alleged money laundering crime, including a personal money judgment, and the government could seek replacement assets if the original properties could not be recovered.
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