One Melbourne based Bitcoin ATM service providing company is in trouble. The Australian government has charged the company for helping international drug smuggling business. The founders of this growing company never stopped themselves from flashing their affluence. And why not? Their company is growing fast. However, now, Australian police have alleged that their business is just the sober face of international drug-dealing business.
Both of the co-founders are in custody at present. Multiple charges are imposed on them, all relating to drug-smuggling. As per the statement was given by the Australian police, they had taken into custody all the drugs which were caught on multiple darknet sites and were getting shipped to Australia. Usually, the customers of these drugs get paid in bitcoin.
This all cross border drug deal came to notice a couple of years ago in 2017 when the Australian Border force deployed at Melbourne Airport caught mail packages full of drugs like Cocaine, and Ecstasy in February. After a gap of eight months, these packages were found in possession of McBeth and Jackson Li. Both of these people got arrested and charged with importing drugs.
Last month, the police department was successful in linking Karagiozis to the drug business. He was then arrested and charged with 14 drug-related crimes. Now the company in question Auscoin is an authorized company possessing (ASIC)-license since 2017. Karagiozis and McBeth, both are the co-founders; however, Karagiozis became the face of the company and took charge of spreading Auscoin cryptocurrency ATMs across the country.
Karagiozis was a Bitcoin giant but lacking the skill of trading. Last year in 2018, when Bitcoin market fell, he thought the market would reach $100,000 by the end of the year. But, he had to lose around $3 million in the Bitcoin crash. The falling market also hit the ICO of Auscoin. The company wanted to raise AUD$30 million but could raise around AUD$2 million only. Karagiozis said that in January 2019 the company turnover from the Bitcoin ATM business had hit the AUD$500,000/week.
“…our turnover is $500,000 a week, which is just insane considering how much the price of Bitcoin has dropped. It just shows there really is a market for it and cryptocurrency is seen as a way of the future for many”.
Besides the Auscoin, Karagiozis is also involved in bitcoin exchange and owns two restaurants apart from his investments in real estate.