In the UK, Olumide Osunkoya pleaded guilty to 5 offenses, becoming the first UK conviction of its kind for offenses relating to the operation of crypto ATMs. He is due to be sentenced for running multiple crypto ATMs without FCA registration, creating and using false documents, and possessing criminal property. Osunkoya illegally operated a network of at least 11 crypto ATMs, which processed more than £2.6m in crypto transactions.
Key Points:
- The Nigerian national and UK resident Olumide Osunkoya pleaded guilty to running at least 11 illegal crypto ATMs across the UK, processing over £2.6 million ($3.5 million) in transactions between 29 December 2021 and 8 September 2023.
- The FCA confirmed there are no legal crypto ATM operators in the UK.
- Osunkoya faces up to 14 years in prison for various offenses, including forgery, counterfeiting, and possession of criminal property.
Short Narrative:
In a landmark case, Olumide Osunkoya became the first individual in the UK to be convicted of running unregistered crypto ATMs. Operating 11 machines across local convenience stores, Osunkoya processed over £2.6 million ($3.5 million) in crypto transactions between December 2021 and September 2023. Despite being denied FCA registration, he continued his activities, generating profit margins as high as 60% per transaction.
Osunkoya’s ATMs performed no customer due diligence, raising serious concerns about money laundering and tax evasion. The court heard evidence that criminals were likely among the users, exploiting these machines to launder illicit funds. Osunkoya even operated under a false alias to evade regulatory oversight.
Charged with multiple offenses, including unregistered crypto ATM operations and forgery, Osunkoya faces up to 14 years in prison. Sentencing will take place at Southwark Crown Court.
Compliance Insight:
This case underscores the importance of regulatory compliance in the crypto space, particularly for operators of high-risk services like crypto ATMs. The FCA’s strong stance against unregistered crypto activity signals increased enforcement actions, and firms must ensure they are meeting all regulatory requirements to avoid severe penalties.
The conviction of Olumide Osunkoya marks a significant milestone for UK regulators in their fight against illegal crypto activity. With the FCA confirming that no legal crypto ATMs are currently operating in the UK, businesses and consumers alike must remain vigilant. Crypto remains a largely unregulated, high-risk space, and both operators and users must understand the potential legal consequences of bypassing compliance requirements. The FCA’s warning is clear: unregistered crypto ATMs are a tool for criminals, and those operating or using them risk severe legal penalties.
Call for Information:
Are you aware of unregistered crypto ATMs or other suspicious crypto activity? FinTelegram urges you to report any concerns or information that could help expose illegal crypto operations. Your insights can help prevent money laundering and protect legitimate investors.
