A UK court has sentenced Olumide Osunkoya, the operator of an illegal crypto ATM network, to four years in prison. This case marks the first time someone in the UK has been convicted for operating a crypto ATM without official authorisation.
Illegal Operations and Modus Operandi
Osunkoya, through his company GidiPlus Ltd, operated at least 11 crypto ATMs across various locations in the UK between December 2021 and September 2023. These machines allowed users to exchange fiat currency for cryptocurrency without official registration from the Financial Conduct Authority (FCA), constituting a serious violation of UK financial regulations. During this period, the ATM network operated by Osunkoya processed transactions worth over £2.5 million.
Attempts at Concealment and Additional Violations
After his business attracted the attention of regulators, Osunkoya attempted to deceive the authorities by relocating several crypto ATMs from his company and operating them privately under a false identity. He also used fictitious company names to continue his operations and evade further detection by the FCA. Additionally, Osunkoya was found guilty of falsifying financial documents and possessing criminal property, including £19,540 in cash obtained from the illegal ATM operations.
Court Verdict and Judge’s Statement
At the Southwark Crown Court in London, Judge Gregory Perrins emphasised that Osunkoya’s actions were not merely an administrative violation but a deliberate and premeditated crime. Judge Perrins stated that Osunkoya’s decision to continue operating illegally was intentional and calculated, demonstrating a blatant disregard for the applicable regulations. Considering the various offences committed, the court ultimately sentenced Osunkoya to four years in prison.
Firm Action by the FCA and UK Police
Osunkoya’s case is part of a large-scale operation by the FCA and UK police in 2023, aimed at dismantling illegal crypto ATM networks across the country. During the operation, 38 locations were inspected, resulting in the seizure of 30 illegal crypto ATMs. The impact of this crackdown was significant, with the number of registered crypto ATMs in the UK dropping sharply from 80 units in 2022 to zero by 2025, highlighting the effectiveness of regulatory actions in combating illegal crypto activities.
A Warning to the Crypto Industry
The sentence imposed on Osunkoya serves as a stark warning to others in the crypto industry to comply with existing regulations. The FCA has emphasised that it will take firm action against financial crime, particularly involving the use of crypto ATMs for unauthorised transactions or money laundering. They underscored the importance of transparency and adherence to financial regulations to maintain the integrity of the crypto industry and protect consumers from potential risks.
With the regulators’ firm actions, it is hoped that the crypto industry can develop in a safer and more trustworthy manner, providing maximum benefits to the wider public.
