The First UK Conviction for Illegal Crypto ATM Operation Announced
In a landmark case for the United Kingdom, Olumide Osunkoya, 45, has pleaded guilty to operating an illegal network of cryptocurrency ATMs. This marks the first conviction of its kind in the UK, as Osunkoya faces multiple charges including fraud, money laundering, and operating without the necessary registration from the Financial Conduct Authority (FCA).
Osunkoya entered his guilty plea at Westminster Magistrates’ Court, admitting to five offences related to the operation of at least 11 crypto ATMs scattered across local convenience shops. The machines processed over £2.6 million (approximately $3.5 million) in crypto transactions between December 2021 and September 2023. According to a statement from the FCA, Osunkoya continued to operate his ATM network despite having been denied registration in 2021.
As highlighted in the court proceedings, “He continued to operate and grow the crypto ATM network in local convenience shops across the UK despite being refused for registration with the FCA in 2021,” indicating a blatant disregard for legal protocols.
Evidence of Criminal Activity
Court evidence suggested that the ATMs were likely used by individuals engaging in money laundering or tax evasion. The FCA noted that Osunkoya had made substantial profits from his operations, earning transaction margins ranging from 10% to 60%. Furthermore, he attempted to evade FCA regulations by creating a false alias and forging documents, including falsely claiming he had sold the ATM network to a non-existent individual.
“Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you,” stated Therese Chambers, Joint Executive Director, Enforcement & Market Oversight at the FCA. She added, “If you’re using a crypto ATM, you are handing your money directly to criminals,” stressing the risks associated with unregulated crypto transactions.
Potential Sentencing Outcomes
Osunkoya faces significant penalties, with the potential for up to 26 years in prison if convicted on all counts. The sentencing for his offences will take place at Southwark Crown Court at a date yet to be confirmed. The FCA has made it clear that it will continue its crackdown on illegal crypto ATMs, which remain a growing concern in the UK.
Since the FCA took over as the anti-money laundering and counter-terrorist financing supervisor for crypto businesses in January 2020, all crypto ATMs operating in the UK have been required to register. However, as of now, there are no legally registered operators, with the FCA having ordered the closure of all unregistered ATMs as of March 2022.
Conclusion
Osunkoya’s conviction represents a significant step in the UK’s efforts to regulate the cryptocurrency landscape, as regulators continue to combat illegal operations that exploit vulnerable consumers. As the popularity of digital assets rises, the FCA’s robust enforcement actions highlight the urgent need for compliance within this evolving market.
