Olumide Osunkoya has been sentenced to four years in prison for running illegal crypto ATMs in the UK. It is the country’s first criminal sentencing for unregistered crypto activity at Southwark Crown Court.
Mr. Osunkoya admitted guilt to five offenses. He pleaded guilty on Sept. 30, 2024. Between Dec. 30, 2021, and 12 March 2022, he operated crypto ATMs at 28 locations through his company, GidiPlus Ltd. The FCA refused his registration in Dec. 2021. Despite the refusal, he continued to run the machines.
Crypto ATM operator sentenced to prison
When the regulators got a whiff, Mr Osunkoya relocated the machines from GidiPlus Ltd. He operated a smaller network of up to 12 ATMs under a false name. He used forged documents to register a new company to avoid being caught by the authorities.
Crypto ATMs allow people to convert cash to crypto or vice versa. The machines require registration with the FCA. Mr Osunkoya neglected to perform anti-money laundering checks. The neglect exposed the machines to the risk of exploitation by criminals. The criminals could have used the machines to launder money. The FCA warns that crypto remains high-risk and largely unregulated.
Forgery and money laundering risks in crypto operations
Forgery was among the allegations. Mr Osunkoya created four fictitious bank statements. He utilized the documents to pass wealth checks with a crypto exchange provider. He also possessed £19,540 cash linked to the operation. His profit margin on deals ranged from 30% to 60%. The criminal network made huge profits.
The FCA has been shutting down unauthorized crypto ATMs since 2023. They disrupted 30 machines at 38 locations. The number of advertised crypto ATMs in the UK dropped from over 80 in 2022 to zero in 2024.
Proceeds of Crime Act and confiscation proceedings
Judge Perrins stated that Mr Osunkoya’s conduct was deliberate and calculated, dismissing arguments that it was no more than a regulatory breach. The FCA applied for confiscation proceedings under the Proceeds of Crime Act 2002 to recover profits earned from the operation.
Therese Chambers from the FCA said the sentencing sends a clear message. Those who flout the rules and engage in crime can expect to face serious consequences. The FCA remains committed to protecting consumers and fighting illicit crypto activity.
