UK man pleads guilty to illegally operating crypto ATMs

A man in the United Kingdom, Olumide Osunkoya, has pleaded guilty to charges related to the unlawful operation of cryptocurrency ATMs. This makes him the first individual convicted for offences relating to the operation of crypto ATMs in the country, according to a report.

Osunkoya is due to be sentenced for running at least 11 crypto ATMs without Financial Conduct Authority (FCA) registration, which is the UK’s main financial regulator. He operated them between December 2021 and September 2023. For this offence, Osunkoya stands to face a prison term of up to two years.

The press release by the FCA revealed that the ATMs processed over £2.6 million ($3.5 million), generating profits of up to 60 percent per transaction. It also added that there are currently no legal crypto ATM operators in the country.

Osunkoya’s unlawful operation

Osunkoya continued the expansion of his ATM network despite being denied registration in 2021. It was found that Osunkoya used a false identity to bypass regulatory scrutiny.

He placed the ATMs in local shops and did not conduct customer verification, which raised concerns that the machines were used for money laundering and tax evasion. Additional charges include forgery, counterfeiting, and possession of criminal property.

Osunkoya is suspected to have made substantial profits from the illegal operation. He could face up to 14 years in prison for these charges.

This case marks a significant moment in the FCA’s efforts to crackdown on illegal crypto operations in the country. FCA’s Joint Executive Director of Enforcement, Therese Chambers, said that using unlicenced crypto ATMs puts users at risk of dealing with criminal enterprises.

She also voiced concern over cryptocurrencies remaining unregulated in the country and carrying financial risks for investors.

Sentencing for Osunkoya’s offences will be held at Southwark Crown Court, with a date that is yet to be determined.