In a significant development within the crypto industry, a UK operator of illegal crypto ATMs has pleaded guilty, marking the first conviction of its type.
- Olumide Osunkoya operated at least 11 unregistered crypto ATMs, handling over £2.6m in transactions illegally.
- Despite being denied registration by the Financial Conduct Authority (FCA) in 2021, Osunkoya continued operations.
- The machines were reportedly used for money laundering and tax evasion, contributing to considerable illicit profits.
- The FCA has intensified its crackdown on illegal crypto ATMs, shutting down numerous operations across the UK.
Olumide Osunkoya has admitted to operating a network of at least 11 illegal cryptocurrency ATMs, which processed transactions exceeding £2.6 million. This admission comes amid a landmark legal case, being the first conviction of its kind in the United Kingdom, and stands as a critical milestone in the enforcement of crypto regulations. Osunkoya’s sentencing is scheduled to take place at Southwark Crown Court, with the date yet to be determined.
Under UK law, crypto asset ventures are required to secure approval from the Financial Conduct Authority (FCA). However, Osunkoya’s request for registration was rejected in 2021. Despite this, he proceeded with his operations, primarily stationed in convenience stores across Britain. These actions have not only circumvented regulatory requirements but also facilitated activities likely associated with financial misconduct such as money laundering or tax evasion, as suggested during court proceedings.
Osunkoya attempted to obscure his identity and operations by using a false alias, an effort that ultimately proved futile in the face of regulatory scrutiny. His activities have been identified as generating substantial illegal profits, further underscoring the risks associated with unregulated financial technologies.
The Financial Conduct Authority has been proactively targeting unlawful crypto ATMs, collaborating with local police forces to dismantle these operations. Raids have been executed in major cities including London, Leeds, Exeter, Sheffield, and Nottingham, resulting in over two dozen shutdowns. FCA’s joint executive director of enforcement, Steve Smart, previously highlighted the risks, stating that users of such ATMs might inadvertently finance criminal enterprises.
This enforcement action underscores the stringent regulatory landscape governing crypto technologies and the imperative for compliance in protecting financial systems from illicit activities.
The conviction of Olumide Osunkoya serves as a pivotal warning to crypto operators on the critical importance of adhering to financial regulations.
