Osunkoya Pleads Guilty to Illegal Crypto ATM Operations

Olumide Osunkoya pleaded guilty to five offenses related to operating illegal crypto ATMs in the UK at Westminster Magistrates’ Court on Monday.

In a press release, the Financial Conduct Authority (FCA) announced that this marks the first conviction in the UK for offenses associated with crypto ATM operations.

Osunkoya illegally operated at least 11 crypto ATMs, processing over £2.6 million ($3.5 million) between December 2021 and September 2023, with profit margins ranging from 10% to 60% on each transaction, according to the FCA.

Initially a director at Gidiplus Ltd, Osunkoya expanded his crypto ATM network in local convenience stores despite FCA rejecting his registration in 2021. The FCA revealed that he did not conduct any customer due diligence, with evidence presented in court indicating that users were likely involved in money laundering or tax evasion. The court also heard that Osunkoya used a false alias to evade FCA regulations.

On September 10, Osunkoya was charged with two offenses for operating crypto ATMs without FCA registration, potentially facing up to two years in prison, a fine, or both. Additionally, he faces charges for forgery and counterfeiting, which could lead to a maximum sentence of 10 years in prison, a fine, or both. He is also charged with possession of criminal property, involving £19,540 ($26,160) in cash linked to his crypto ATM operations, with a maximum potential sentence of 14 years in prison, a fine, or both.

Sentencing is scheduled for London’s Southwark Crown Court at a yet-to-be-determined date.

No Legal Crypto ATM Operators in the UK

Following Osunkoya’s charges, the FCA confirmed that there are no legal crypto ATM operators in the UK.

“Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you,” stated Therese Chambers, FCA’s joint executive director of enforcement and market oversight. “If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.”

The FCA also reiterated its warning to cryptocurrency buyers, advising them to be prepared to lose all their money.

“Crypto remains largely unregulated in the UK and is high-risk,” the FCA stated.