First UK Individual Pleads Guilty to Operating Illegal Crypto ATMs: FCA Issues Warning

In a groundbreaking case, Olumide Osunkoya, a 45-year-old Londoner, has become the first individual in the UK to plead guilty to operating crypto ATMs against the law. The case was heard in Westminster Magistrates’ Court, where Osunkoya admitted to running at least 11 unregistered crypto-ATMs and fabricating documents to evade regulations.

The Financial Conduct Authority (FCA) has warned that crypto ATMs are “handing money to criminals,” as Osunkoya’s illegal operation resulted in £2.6 million worth of transactions from December 2021 to September 2023. Despite being denied registration by the FCA in 2021, Osunkoya continued to expand his network of crypto-ATMs across the UK without conducting proper customer due diligence.

Osunkoya could face up to 25 years in prison for his crimes, including operating unregistered ATMs, forgery, and possession of criminal property. The FCA’s enforcement efforts have led to the removal of 26 unlawfully operating machines in 2023, highlighting the regulatory challenges posed by the rapidly evolving cryptocurrency landscape.

While the UK is cracking down on illegal crypto ATMs, other countries, like the United States, have seen a rise in such machines. However, the associated risks of money laundering and scams have led to regulatory measures being introduced in many developed nations. In fact, users in the US lost $110 million to crypto ATM scams this year, emphasizing the need for stricter oversight in the cryptocurrency industry.

As regulators worldwide grapple with the challenges posed by cryptocurrencies, the case of Olumide Osunkoya serves as a stark reminder of the consequences of illegal crypto activities. The sentencing of Osunkoya at Southwark Crown Court will be closely watched as a landmark moment in the fight against financial crimes in the digital age.