Seizure of Illegal Crypto-Powered ATMs Leads to the Arrest of ‘Chuck Constant’
An important announcement has been made by the Department of Justice, US (DOJ) on Thursday informing about the arrest of a wanted crypto fraudster.
The authority had been after the fraudster for a while and they were searching all over the country to find him and bring him to court.
DOJ’s announcement suggested that the law enforcement agencies in the US have arrested the notorious ‘Chuck Constant’.
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As per DOJ’s information, Chuck Constant is the alias used by the fraudster whose full name is ‘Charles Riley Constant’.
Constant was wanted by the authorities in the US in respect of the financial crimes he had committed. US authorities had booked him for fraudulently embezzling and misappropriating funds exceeding $1 Million.
According to DOJ’s information, this $1 Million plus was collected by Constant after securing Small Business Administration (SBA) loans.
SBA loans as well as the misappropriated funds were used by Constant as an investment into acquiring crypto-powered ATMs.
Constant’s Arrest and Belongings
The law enforcement agencies received information that Constant was going to launch a company supposed to be called “Coindawg LLC’.
Coindawg’s proposed business was to launch a crypto-powered ATM business under the leadership of Constant through Coindawg.
According to Constant’s plan, such ATMs were initially to be brought into the US States of Oklahoma and Texas.
However, before he could begin his business, Constant was taken down by the authorities. When Constant was arrested, the authorities also discovered various items and proceeds of crime from the site.
For instance, there were at least 18 crypto-powered ATMs discovered on site which were immediately taken into seizure by authorities. The authorities acted fast as they were eager to take down the ATMs that were used for illicit activities.
In addition, there were laptops, hardware wallets, mobile phones, vehicles, and considerable cash that the authorities were able to confiscate.
The authorities are going through all the evidence they have collected and will be using it to get to the bottom of the entire matter.
Accusations against Constant
DOJ informed that Constant along with his accomplices started to defraud lenders in 2020 when the Covid-19 pandemic was at its peak.
DOJ said that Constant initially secured a loan of up to $700,000 fraudulently from SBA. These funds were then used by Constant for purchasing Bitcoins from a New York-based crypto trading platform.
Similarly, Constant and friends secured seven loans that were supposed to be provided to victims under ‘Economic Injury Disaster Loans’. Even the funds of these Covid-19 hit victims were utilized illegally by Constant.
Most importantly, at all levels of securing finances and misappropriating funds, Constant and his friends used fake documents including identity documents.
The documents required by SBA were forged and manipulated so as to fulfill the loan process.
It may be noted that Constant was successful in fulfilling his dream of establishing Coindawg. The firm started to pursue Constant’s objective by offering crypto services, including a supply of crypto-powered ATMs.
On the day when Constant was arrested, Coindawg had already transacted crypto assets worth exceeding $3 Million since its inception. As a transaction cost, Coindawg was charging a whooping fee charge of 15% per transaction.
Charges Constant Is Going To Face
The constant is an American citizen of 54 years of age who resides in Allen, Texas. Specific charges against him include hatching a conspiracy on his own and through accomplices to cause monetary loss to the public in general.
His conspiracy also included committing activities such as public theft, fraud, crypto Ponzi scheme, misappropriation of funds, money laundering, etc.
The next 20 years of Constant’s life are at stake because if charges are proven, he could be sent to jail for 20 years. In the least scenario, his jail sentence could be not more than 10 years. However, the decision is that of the Court.