Olumide Osunkoya has pleaded guilty to five offences related to illegally operating a network of cryptocurrency ATMs, marking the first UK conviction of its kind. Mr. Osunkoya appeared in Westminster Magistrates’ Court yesterday and admitted to running multiple crypto ATMs without Financial Conduct Authority (FCA) registration, using false documents, and possessing criminal property.
First Conviction of Its Kind in the UK
Mr. Osunkoya’s case is the first criminal prosecution in the UK for offences related to the operation of unregistered crypto ATMs. The FCA brought the charges under the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017 (MLRs), which require crypto businesses to register with the regulator.
Details of the Illegal Crypto ATM Network
Between December 29, 2021, and September 8, 2023, Mr. Osunkoya illegally operated at least 11 crypto ATMs across the UK, processing over £2.6 million in transactions. The network was mainly set up in local convenience stores, and despite having his FCA registration application rejected in 2021, he continued to grow the operation. The court heard that Mr. Osunkoya carried out no customer due diligence or checks on the source of funds, leading to the machines being used for potential money laundering and tax evasion.
Evidence presented in court showed that Mr. Osunkoya used a false alias in an attempt to evade FCA regulations and that he may have made a substantial profit from the illegal activities, receiving a margin of between 10% and 60% per transaction.
Charges and Sentencing
Mr. Osunkoya faces two charges under Regulations 86 and 92 of the MLRs for operating crypto ATMs without FCA registration, which carry a maximum penalty of up to two years in prison, a fine, or both. He is also charged with two offences under the Forgery and Counterfeiting Act 1981 related to false documents created and used during his activities, with a maximum penalty of up to ten years in prison. Additionally, Mr. Osunkoya is charged with possession of criminal property—£19,540 in cash—under the Proceeds of Crime Act 2002, which carries a maximum sentence of up to 14 years in prison.
Mr. Osunkoya’s company, Gidiplus Ltd, initially applied for registration under the Money Laundering Regulations in 2020 but was refused in 2021. He falsely told the FCA that he had sold the crypto ATM network to an individual who did not exist.
The FCA withdrew charges against another individual, Sally Lavington Osunkoya, following Mr. Osunkoya’s guilty pleas.
Sentencing and Further Action
Mr. Osunkoya is due to be sentenced at Southwark Crown Court at a date yet to be confirmed. This case sets a significant precedent for the regulation of cryptoasset businesses and highlights the FCA’s commitment to enforcing anti-money laundering and counter-terrorist financing laws.
The FCA has been the anti-money laundering and counter-terrorist financing supervisor for UK cryptoasset businesses since January 2020. Crypto ATMs, which allow people to buy or convert money into cryptoassets, are currently all illegal in the UK. The FCA maintains a list of crypto businesses operating without authorisation.
