London, Monday, October 7, 2024 – Olumide Osunkoya has pled guilty to operating an unregistered network of cryptocurrency ATMs in the UK, in what marks the country’s first-ever criminal prosecution involving illegal crypto ATM operations. The Financial Conduct Authority (FCA) announced on Monday that Osunkoya managed at least 11 ATMs, installed across multiple convenience stores, which facilitated over £2.6 million ($3.5 million) in digital currency transactions from 2021 to 2023.
Despite being denied FCA approval in 2021, Osunkoya continued to operate the ATMs, allowing customers to buy and sell cryptocurrencies without regulatory oversight. His operations did not comply with crucial anti-money laundering (AML) regulations, as he failed to conduct necessary customer due diligence, such as verifying the source of funds or identities of users. These failures raised concerns that his network was potentially facilitating money laundering and tax evasion.
Investigators also revealed that Osunkoya used false aliases and submitted fraudulent documents to avoid detection and deceive regulatory authorities. In addition to the illegal ATM network, he was found in possession of £19,540 ($26,165) in cash, believed to be proceeds from his unregistered crypto activities. Osunkoya now faces charges related to operating unregistered crypto services and the possession of criminal property. Sentencing is set to take place at Southwark Crown Court at a later date.
This case is significant as it marks the first criminal prosecution in the UK for operating unregistered cryptocurrency ATMs under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).
However, as of 2023, there are no legally operated cryptocurrency ATMs in the UK, as none have been approved by the FCA.
