A United Kingdom court has sentenced Olumide Osunkoya to four years in prison for operating an unregistered Bitcoin ATM network, marking the country’s first-ever criminal conviction for illegal cryptoasset activities. The ruling was delivered by Judge Gregory Perrins at the Southwark Crown Court, following Osunkoya’s guilty plea in September 2024.
Authorities revealed that between December 2021 and March 2022, Osunkoya ran a network of crypto ATMs across 28 locations in the UK under his company, GidiPlus Ltd. Despite applying for regulatory approval in 2020, the Financial Conduct Authority (FCA) rejected his application in 2021, citing compliance concerns. However, Osunkoya continued operations illegally, later reducing his network to 12 machines after being investigated.
His charges included:
- Operating unregistered crypto ATMs as the director of GidiPlus Ltd and as a sole trader.
- Forgery, after faking four bank statements to pass financial compliance checks.
- Using a false identity to register his company under an alias.
- Possession of criminal property, with authorities seizing £19,540 in cash linked to the illegal ATM network.
During sentencing, Judge Perrins condemned Osunkoya’s defiance of regulatory laws, stating:
“Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator… You knew full well that you were acting unlawfully… You went to great lengths to create a false identity to conceal your involvement… Your actions were deliberate and carefully planned… It cannot be said that it is a mere regulatory breach.”
Authorities estimated that Osunkoya’s operations processed over £2.5 million in transactions, with a typical markup of 30% to 60% per transaction, generating at least £500,000 in illicit profits.
FCA’s Stance and Industry Implications
This case enforces the FCA’s commitment to enforcing compliance within the evolving cryptocurrency sector. Therese Chambers, joint executive director of enforcement and market oversight at the FCA, stated:
“This is the UK’s first criminal sentencing for unregistered crypto activity and sends a clear message: those who flout our rules, seek to evade detection and engage in criminal activity will face serious consequences.”
The FCA has been proactive in addressing illegal crypto ATMs, collaborating with law enforcement agencies to dismantle unauthorized operations. In 2023 alone, the FCA visited 38 locations and disrupted 30 machines. As a result, the number of crypto ATMs advertised on CoinATMRadar in the UK declined from over 80 in 2022 to none in 2024.
The UK’s stringent actions align with a global trend of regulators intensifying scrutiny over crypto ATM networks due to their potential misuse in money laundering activities. These machines allow users to buy or convert cash into cryptocurrencies with minimal traceability, raising concerns among financial watchdogs.
For instance, Germany’s financial regulator conducted operations targeting cryptocurrency ATMs, seizing significant amounts of cash to curb illicit activities.
Quick Facts:
- Olumide Osunkoya is the first individual in the UK to be criminally convicted and sentenced for operating unregistered crypto ATMs.
- His unauthorized operations processed over £2.5 million, yielding profits of at least £500,000.
- The FCA has intensified efforts against illegal crypto ATMs, leading to a significant reduction in such machines across the UK.
