London Resident Denies Charges of Operating Illegal Crypto ATMs

Habibur Rahman, a 37-year-old from East Ham, London, has pleaded not guilty to charges of operating unlicensed cryptocurrency ATMs and laundering funds through digital currency transactions.

Rahman appeared at Medway Magistrates' Court, where prosecutors alleged he converted £300,000 of illicit cash into cryptocurrency between 1 April and 16 June 2022, without authorisation from the Financial Conduct Authority (FCA).

The accusations emerged after Kent Police raided a shop in Chatham in April 2023, seizing multiple cryptocurrency ATMs, one of which was publicly displayed.

The case is now being moved to Maidstone Crown Court, with the next hearing scheduled for 7 November.

Rahman is out on bail as authorities investigate further claims of money laundering and regulatory violations.

FCA's First Conviction for Crimes Linked to Running Crypto ATMs

Less than two weeks ago, the FCA achieved its first conviction related to the illegal operation of cryptocurrency ATMs.

Olumide Osunkoya, 45, pleaded guilty to five charges at Westminster Magistrates' Court on 30 September, including using false documents and possessing criminal property.

The FCA accused Osunkoya of running a network of 11 crypto ATMs, which facilitated over £2.6 million in transactions from December 2021 to September 2023.

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He allegedly failed to perform customer due diligence or verify the source of funds for users of these machines, which were located in convenience stores across the UK.

The court heard that the ATMs were likely used by individuals involved in money laundering or tax evasion, and Osunkoya is believed to have profited significantly from the operation.

He also created a false alias to circumvent FCA regulations.

Sentencing will occur at Southwark Crown Court, with the date yet to be confirmed.

The FCA reiterated that no crypto ATMs are legally licensed in the UK.