Olumide Osunkoya pleads guilty to operating unregistered crypto ATMs across the UK, facing fraud and money laundering charges. He could receive up to 26 years in prison.
A UK-based crypto ATM operator, Olumide Osunkoya, has pleaded guilty to several charges, including fraud and money laundering, after running an unlicensed network of cryptocurrency ATMs. His operations, which spanned from December 2021 to September 2023, involved at least 11 crypto ATMs located in convenience stores across the United Kingdom. This is the first such prosecution under the country’s money laundering, terrorist financing, and transfer of funds regulations.
Illegal Crypto ATM Operations
Osunkoya’s crypto ATM network processed over £2.6 million (~$3.5 million) in transactions during its operation. Many of the transactions were suspected of facilitating money laundering and tax evasion. Despite being denied Financial Conduct Authority (FCA) registration in 2021, Osunkoya continued to expand his operations, charging users between 10% and 60% in transaction fees, generating significant profits.
To bypass regulatory scrutiny, Osunkoya reportedly forged documents and created a false alias to hide his illegal activities. The FCA revealed that he also possessed £19,540 (~$26,000) in cash, suspected to be profits from his unlawful crypto ATM network. Authorities emphasized the severity of these charges, and if convicted of all offenses, Osunkoya faces up to 26 years in prison.
The FCA’s Role and Regulations
The FCA has been responsible for overseeing Anti-Money Laundering (AML) and Counter-Terrorist Financing measures for crypto-related businesses in the UK since January 2020. In March 2022, the FCA ordered the shutdown of all unregistered crypto ATMs, yet Osunkoya’s illegal operations persisted. The FCA’s crackdown is part of its broader effort to mitigate risks in the growing cryptocurrency sector, particularly those associated with anonymous transactions via crypto ATMs.
Therese Chambers, the FCA’s joint executive director, previously issued a stern warning to crypto users: “If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.”
Legal Proceedings and Impact
Osunkoya’s guilty plea marks a significant moment in the UK’s fight against illegal crypto operations. His sentencing, which will be decided at a later date, could set a precedent for other operators attempting to skirt financial regulations. The charges against a second individual involved in the operation, Sally Lavington Osunkoya, were dropped following the plea.
This case highlights the need for stricter enforcement of regulations within the cryptocurrency sector and serves as a warning to those attempting to profit from the lack of regulatory oversight in emerging technologies.
