Man pleads guilty to operating illegal crypto ATMs in first UK conviction of its kind

Olumide Osunkoya pleaded guilty to five offenses connected with running illegal crypto ATMs in the UK at Westminster Magistrates’ Court on Monday.

In a press release, the country’s financial regulator, the Financial Conduct Authority, said it is the first UK conviction for offenses relating to the operation of crypto ATMs.

Osunkoya illegally operated at least 11 crypto ATMs in the country, processing more than £2.6 million ($3.5 million) between December 2021 and September 2023, with profit margins between 10% and 60% on each transaction, according to the FCA.

First acting as a director of Gidiplus Ltd, then as a sole practitioner, Osunkoya continued to grow his crypto ATM network in local convenience shops across the UK despite the FCA refusing his registration in 2021. The regulator said he completed no customer due diligence checks, with the court hearing evidence that those committing money laundering or tax evasion were likely among the users of the machines. The court also heard that Osunkoya used a false alias in an attempt to evade the FCA’s rules.

On Sept. 10, Osunkoya was charged with two offenses of operating crypto ATMs without FCA registration, facing a maximum sentence of up to two years in prison, or a fine or both. He faces a further two offenses relating to forgery and counterfeiting, with a sentence of up to 10 years in prison, a fine, or both. Osunkoya is also charged with one offense of possession of criminal property, £19,540 ($26,160) in cash, relating to the suspected proceeds of his crypto ATM network, the maximum sentence of which is up to 14 years in prison, a fine, or both.

Sentencing will take place at London’s Southwark Crown Court at a date yet to be confirmed.

No legal crypto ATM operators in the UK

Following Osunkoya’s charges, the FCA stated there are no legal crypto ATM operators in the UK.

“Our message today is clear. If you're illegally operating a crypto ATM, we will stop you,” FCA joint executive director of enforcement and market oversight Therese Chambers said earlier this month. “If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.”

The regulator also reiterated its warning to people who buy cryptocurrency that they should be prepared to lose all their money.

"Crypto remains largely unregulated in the UK and is high-risk," the FCA said.