Olumide Osunkoya has pleaded guilty to multiple offences related to running an unregistered cryptocurrency ATM network across the United Kingdom. This case, heard at Westminster Magistrates’ Court, marks a significant milestone. It also represents the first conviction of its kind under the UK’s anti-money laundering laws.
During the court proceedings, Mr. Osunkoya admitted to five charges. These charges include the illegal operation of at least 11 crypto ATMs without registration from the UK Financial Conduct Authority (FCA). Between December 29, 2021, and September 8, 2023, his machines processed transactions exceeding £2.6 million. Even though the FCA denied his registration in 2021, Mr. Osunkoya did not stop the growth of his network. He installed the ATMs in local convenience stores across the UK.
The court also noted that Mr. Osunkoya never performed basic customer due diligence and never completed source of funds checks. This gave a chance for people involved in money laundering and tax evasion to use his machines. Analysis of the above transactions revealed that Mr. Osunkoya benefited immensely from these transactions as he made margins of between 10% and 60%.
£19,540 Seized from Osunkoya in Crypto ATM Fraud Case
Apart from running the fake ATMs, Mr. Osunkoya has been charged with making false documents and having criminal property. Police recovered £19,540 in cash, which they claimed were proceeds from his unlawful business. The prosecution pointed out that Mr. Osunkoya tried to avoid FCA regulations. He was using a fake code name and pretended to have sold the ATM network to a person who did not exist.
The court will endorse a sentencing date at Southwark Crown Court. Mr. Osunkoya’s case also shows that the FCA has been keen to oversee the cryptocurrency activities under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017.
Currently, there are no legally operating crypto ATM operators in the UK. This conviction emphasises the importance of compliance with regulatory standards in the evolving cryptocurrency landscape. The outcome of this case could influence future regulations and enforcement actions in the sector.
