Man Pleads Guilty to Illegal Crypto ATM Operation in the UK

• Olumide Osunkoya pleaded guilty to illegally operating crypto ATMs across the UK.
• Osunkoya expanded his operations despitebeing refused registration by the Financial Conduct Authority (FCA) in 2021.
• The FCA highlighted that there are currentlyno legal crypto ATM operators in the UK.

The FCA announced on Monday that Olumide Osunkoya pleaded guilty to charges related to money laundering and fraud.

Operating 11 Illegal Crypto ATMsSince January 10, 2020, the FCA has been the UK's anti-money laundering (AML) and counter-terrorist financing (CTF) supervisor for cryptoasset businesses.

Between December 29, 2021, and September 8, 2023, Osunkoya illegally operated at least 11 crypto ATMs in the UK and processed over 2.6M ($3.5M) in crypto transactions, per the FCA's September 30 announcement.

Despite being refused registration by the FCA in 2021, Osunkoya continued to run the crypto ATM network in convenience stores across the UK.

This is the first prosecution in the UK under the terrorist financing, money laundering, and transfer of funds regulations.

In October 2023, the FCA also introduced regulations to guide how crypto companies promote their services and has since issued over 1K warnings to crypto firms.

Crypto ATMs vs Illegal Activities

Osunkoya's operation handled millions in crypto transactions. The court heard that he is suspected of profiting from the illegal operation, receiving a 10%-60% margin on transaction fees.

Further charges were brought against Osunkoya forpossessing 19,540 in criminal property relating to the suspected profits from his ATM network.

Evidence was noted in court that many of the ATM users were engaging in tax evasion and money laundering.

In addition to running crypto ATMs without FCA registration, Osunkoya attempted to evade regulations by forging documents to conceal illegal activities.

In 2022, the FCA highlighted that there are no legal crypto ATM operators in the UK. Previously, the FCA investigated 36 crypto ATM locations and ruled against Gidiplus, among others. The authority warns UK citizens not to use crypto ATMs.

Summing Up

ATM-related scams have recently become prevalent in the UK. The FCA worked with the police to carry out raids across Nottingham, Sheffield, and Exeter.

In the US, crypto ATM scams are also common. The FBI investigated over 5.5K fraud cases involving crypto ATMs (kiosks) in 2023 alone.

References

• Olumide Osunkoya pleads guilty to illegally operating crypto ATM network (fca.org.uk)
• Warning on illegal crypto ATMs operating in the UK (fca.org.uk)

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