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Olumide Osunkoya has pleaded guilty to illegally running a crypto ATM network across the UK. Even though the UK Financial Conduct Authority (FCA) denied his registration, his operation handled millions in cryptocurrency transactions. This case represents the first conviction of its type under the UK’s anti-money laundering laws.
UK’s First Illegal Crypto ATM Conviction Unveiled
The UK Financial Conduct Authority (FCA) announced Monday that Olumide Osunkoya has pleaded guilty to running an illegal crypto ATM network. Noting that Osunkoya faced five charges at Westminster Magistrates’ Court, the FCA detailed:
This is the first UK conviction of its kind for offences relating to the operation of crypto ATMs.
The UK financial regulator explained: “Mr. Osunkoya illegally operated a network of at least 11 crypto ATMs which processed more than £2.6m [$3.5 million] in crypto transactions between 29 December 2021 and 8 September 2023.” It was noted in court that individuals engaging in money laundering and tax evasion likely used the machines.
Despite being denied registration by the FCA in 2021, he expanded his operations, placing ATMs in convenience stores across the UK. The regulator described:
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. Mr. Osunkoya completed no customer due diligence or source of funds checks on those who used the crypto ATMs.
In addition to operating without FCA registration, Osunkoya faces charges for creating false documents and possessing £19,540 in criminal property, suspected to be profits from the crypto ATM network. He also deceived authorities by falsely claiming to have sold the business to a fictitious individual. The FCA emphasized that no legal crypto ATM operators currently exist in the UK, and Osunkoya’s sentencing, where he could face up to 14 years in prison, is pending at Southwark Crown Court.