Olumide Osunkoya Pleads Guilty in First UK Case Involving Illegal Crypto ATM Network

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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September 29, 2024

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The UK Financial Conduct Authority (FCA) confirmed in a press release on Monday that Olumide Osunkoya pleaded guilty to managing a network of unregistered crypto ATMs across the UK, with transactions totaling £2.6 million between 2021 and 2023.

Following the plea, the UK Financial Conduct Authority (FCA) revealed that Osunkoya operated the unregistered machines despite being denied approval in 2021, failing to conduct necessary due diligence on customers.

Olumide Osunkoya’s Unregistered Crypto ATM Operations

Olumide Osunkoya’s crypto ATM network of at least 11 machines, which operated across multiple UK convenience stores, allowed users to buy and sell digital assets without regulatory oversight.

Investigators discovered that the machines facilitated over £2.6 million ($3.5 million) in transactions between 2021 and 2023.

Court documents revealed that Osunkoya failed to perform necessary customer due diligence, such as verifying the source of funds, leading to suspicions that the machines were used for money laundering and tax evasion.

Despite being denied registration with the FCA in 2021, Osunkoya continued to operate and expand the network using a false alias to evade detection.

He also falsified documents in an attempt to cover up his activities and deceive regulators.

In addition to the unregistered ATM operations, Osunkoya is also charged with possessing criminal property, including £19,540 ($26,165) in cash, believed to be proceeds from his illegal crypto operations.

Sentencing will take place at Southwark Crown Court at a later date.

UK’s First Criminal Case Against Illegal Crypto ATM Network

This case marks the first instance of criminal prosecution pursued by the FCA for unregistered crypto activities under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

Additionally, it is the first time someone has been charged for operating a network of illegal crypto ATMs in the UK. There are currently no legal crypto ATM operators in the country.