Crypto Dispensers, a Chicago-based Bitcoin ATM operator, is exploring a potential $100 million sale after its founder was hit with federal money laundering charges.

The company announced Friday it has retained advisors to conduct a strategic review and gauge interest from potential buyers. Crypto Dispensers highlighted its 2020 pivot from physical ATM hardware to a software-focused business model, a move aimed at addressing mounting fraud concerns, compliance challenges, and regulatory oversight.

CEO Firas Isa framed the sale exploration as the company’s next phase of expansion. “Hardware showed us the ceiling. Software showed us the scale,” he stated.

The firm noted it may remain independent depending on how the review unfolds, and there’s no guarantee a deal will materialize.

Money Laundering Charges Against CEO

The sale announcement came just days after the US Department of Justice unsealed charges alleging Isa and Crypto Dispensers facilitated a $10 million money laundering operation.

Federal prosecutors claim that from 2018 through 2025, Isa knowingly processed funds derived from wire fraud and drug trafficking through the company’s ATM infrastructure. Despite know-your-customer obligations, authorities say he converted the illicit proceeds into cryptocurrency and transferred them to wallets intended to hide their source.

Isa and Crypto Dispensers have entered not guilty pleas to the conspiracy charge, which carries up to 20 years in federal prison. A conviction could trigger asset forfeiture of property connected to the alleged scheme.

Rising Pressure on Crypto ATM Industry

Crypto ATMs face intensifying scrutiny from US regulators and municipalities over fraud-related concerns. The FBI documented nearly 11,000 scam complaints involving crypto kiosks in 2024, representing losses exceeding $246 million. This has prompted lawmakers to examine the machines’ anonymity features and their connection to criminal activity.

Local governments are responding with prohibitions and tight restrictions. Stillwater, Minnesota banned crypto kiosks entirely after residents lost substantial sums to scams, including one case involving a fraudulent PayPal “overpayment” scheme.

Spokane, Washington enacted a citywide ban in June following a spike in scam reports, describing the machines as a “preferred tool for scammers.”

Some cities are opting for limits rather than complete bans. Grosse Pointe Farms, Michigan imposed a $1,000 daily transaction cap and $5,000 two-week maximum on any future crypto ATM operations, despite currently having no active kiosks in the area. Officials said the restrictions aim to shield residents from fraud risks.