- Olumide Osunkoya pleaded guilty to UK FCA charges of illegal offer and use of cryptocurrency automated teller machines (ATMs)
- The 45-year-old Osunkoya will be sentenced at a later date
A 45-year-old man has pleaded guilty to several charges involving the illegal operation of cryptocurrency automated teller machines in the UK.
Olumide Osunkoya appeared before the Westminster Magistrates’ Court, marking the first-ever conviction related to illegal crypto ATM operations. In a press release from the UK’s Financial Conduct Authority (FCA), Osunkoya pleaded guilty to five charges.
Illegal crypto ATM operation
Among charges, Osunkoya allegedly ran several crypto ATMs without registering with the FCA. The 11 crypto teller machines processed over $2.6 million in cryptocurrency transactions between December 29, 2021 and September 8, 2023.
He also reportedly created and used false documents, having been denied FCA approval in 2021. In this way, Osunkoya illegally set up and offered a crypto ATM network across convenience shops in the country.
Osunkoya didn’t conduct due customer diligence measures and the prosecution alleged potential money laundering via the machines. He also faced charges of criminal property possession.
“The court heard evidence that those likely committing money laundering or tax evasion were using his machines. Mr Osunkoya is suspected to have made substantial profit from the operation,” the FCA said in the press release.
Police seized £19,540 in cash from the accused, which law enforcement believe are proceeds from the illegal ATM operation.
Osunkoya will be sentenced at a later date.
The UK has increasingly opened up as a crypto-friendly country, with key bills passed as lawmakers eye a crypto framework. However, the FCA has required strict registration of all providers amid anti-money laundering measures.
In 2023, the FCA undertook 34 nationwide inspections as it continued its crackdown on illegal crypto ATMs.
