UK cryptocurrency ATM operator Olumide Osunkoya pleads guilty to fraud and money laundering charges

A United Kingdom crypto ATM owner has pleaded guilty to multiple charges, including fraud and money laundering. The case marks the first prosecution in the UK under regulations targeting money laundering and the financing of terrorism.

According to a September 30 announcement, Olumide Osunkoya, the accused, operated at least 11 crypto ATMs across the UK without the mandatory Financial Conduct Authority (FCA) registration. These activities took place between December 2021 and September 2023.

Unauthorised Crypto ATMs Processed Millions in Transactions

The ATMs, located in local convenience stores, facilitated more than £2.6 million (approximately $3.5 million) in crypto transactions during this period. Evidence presented during the trial indicated that several users of these machines were likely engaged in money laundering or tax evasion activities.

Despite being refused FCA registration in 2021, Osunkoya allegedly continued expanding his crypto ATM network. His profits were substantial, with transaction fees ranging from 10% to 60%, indicating a significant financial gain from the unauthorised operations.

Related reading：Crackdown on Bitcoin ATMs Intensifies as US Leads the Charge

Illegal Methods Used to Evade FCA Scrutiny

The court heard that Osunkoya attempted to evade regulatory oversight by creating a false alias and falsifying documents. These actions were intended to conceal the illegal operations of his crypto ATMs.

He was also found in possession of £19,540 (roughly $26,000) in cash, which prosecutors suspect were proceeds from his illicit activities.

If given the maximum sentence for all charges, Osunkoya could face up to 26 years in prison. His sentencing is expected at a later date.

Regulatory Crackdown on Crypto ATMs in the UK

The case highlights the ongoing challenges the FCA faces in regulating crypto asset businesses. The FCA, which has overseen Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations for the crypto sector since January 2020, ordered the closure of all unregistered crypto ATMs in March 2022.

As of now, no crypto ATMs are legally registered in the UK. Despite the rising popularity of digital assets, the lack of proper regulatory adherence remains a critical issue in the sector.

Related reading：UK authorities impose first criminal penalty for crypto ATM operating without FCA registration

FCA Warns Against Crypto ATM Use

In a previous statement, Therese Chambers, FCA joint executive director, warned consumers of the risks associated with crypto ATMs. “If you’re using a crypto ATM, you are handing your money directly to criminals,” she stated, underscoring the dangers of exploitation in this sector.

Osunkoya’s case serves as a cautionary tale about the importance of regulatory compliance within the crypto industry. The illicit operations tied to crypto ATMs highlight the vulnerabilities of these machines to misuse in money laundering and other illegal activities.