FCA Secures Historic Conviction for Illegal Crypto ATM Operation in the UK
The UK Financial Conduct Authority (FCA) has achieved a significant milestone with its first-ever conviction for the illegal operation of a cryptocurrency ATM network in the country. Olumide Osunkoya, the mastermind behind the operation, recently pleaded guilty to the charges against him.
Despite being denied registration by the FCA, Osunkoya ran a network of at least 11 crypto ATMs across the UK. Between December 29, 2021, and September 8, 2023, these ATMs processed over £2.6 million ($3.5 million) worth of cryptocurrency transactions. It is believed that individuals involved in money laundering and tax evasion took advantage of these machines.
Osunkoya’s operation was not only unauthorized but also lacked basic customer due diligence and source of funds checks. He expanded his network by installing ATMs in various convenience stores, defying the FCA’s denial of registration in 2021.
Aside from the illegal operation itself, Osunkoya faces additional charges for producing counterfeit documents and possessing £19,540 in suspected criminal proceeds from the crypto ATM network. In an attempt to deceive authorities, he falsely claimed to have sold the business to a fictional individual.
The FCA emphasized that no legally operating crypto ATM operators currently exist in the UK. Osunkoya’s impending sentencing at the Southwark Crown Court comes with the possibility of a prison term of up to 14 years. This conviction serves as a significant milestone in the UK’s fight against illegal crypto operations and strengthens efforts to combat money laundering in the cryptocurrency industry.