Olumide Osunkoya has pleaded guilty to five offenses related to running an illegal network of crypto ATMs across the UK, making it the country’s first conviction of its kind.
Osunkoya’s Illegal ATM Network
Osunkoya managed a network of at least 11 crypto ATMs, which processed more than £2.6 million in crypto transactions between December 2021 and September 2023. Despite being refused FCA registration in 2021, he continued running the machines in local convenience stores nationwide. These crypto ATMs, which convert cash into cryptocurrency, were used without standard customer due diligence or source-of-funds checks, raising concerns about money laundering and tax evasion.
Regulator's Reaction
Since January 2020, the FCA has acted as the anti-money laundering supervisor for UK crypto businesses, making registration essential for operating legally. Osunkoya attempted to bypass these regulations by creating a false identity. Court evidence showed he profited from transaction margins ranging between 10% and 60%. Authorities also found £19,540 in cash, believed to be proceeds from his illegal activities.
Court Case and Consequences
The charges against Osunkoya include operating crypto ATMs without FCA registration, creating false documents, and possessing criminal property. He faces potential prison sentences, fines, or both. His sentencing will take place at Southwark Crown Court on a date yet to be confirmed.
This case highlights the importance of adhering to strict regulations for cryptocurrency operations and the necessity of registration with financial regulators for legal operation.
