- A British citizen has pleaded guilty to running an unregistered cryptocurrency ATM network across the UK
- This is the first known conviction in the UK linked to operating illegal crypto ATMs
- The Financial Conduct Authority banned crypto ATMs in 2022
A British citizen has admitted to running an unauthorized network of cryptocurrency ATMs across the UK, marking the first such case in the country. Olumide Osunkoya was arrested earlier this year following an extensive investigation that revealed the unregistered crypto ATMs were being used to exchange cash for cryptocurrency without following proper regulations. Crypto ATMs were outlawed in the UK in 2022 after no operators received licenses.
Operating Without a License
Osunkoya appeared at Westminster Magistrates’ Court yesterday, where he admitted to running an illegal network of crypto ATMs across the UK without proper registration, which processed transactions totalling over £2.6 million. Osunkoya faces multiple charges, including operating without FCA authorization and possession of criminal property, with sentencing scheduled at a later date.
The crypto ATM operation spanned at least 11 crypto ATMs in convenience stores across the UK between December 2021 and September 2023, despite Osunkoya being denied registration by the Financial Conduct Authority (FCA) in 2021.
According to the court, the machines were used by individuals suspected of money laundering and tax evasion, and Osunkoya failed to perform customer due diligence or check the source of funds for these transactions, further implicating him in criminal activity.
Fake Documents and Evasion
In addition to illegally operating the machines, Osunkoya also created false documents to circumvent FCA regulations, using an alias and falsely claiming to have sold the network of ATMs to a nonexistent individual. This fraudulent behavior led to charges under the Forgery and Counterfeiting Act 1981.
The court heard that Osunkoya made a significant profit from the operations, earning between 10% and 60% on each transaction. He was also charged with possessing £19,540 in cash, believed to be the proceeds of his illegal activity, under the Proceeds of Crime Act 2002.
This case marks a legal milestone as the first UK prosecution for operating unregistered crypto ATMs. There could be more on the horizon, however, after Habibur Rahman was arrested last month for a similar crime.
