Crypto crime: UK man pleads guilty to operating illegal ATM network

Olumide Osunkoya has pleaded guilty to five offenses related to running an illegal network of crypto ATMs across the UK, making it the country’s first conviction of its kind.

Osunkoya’s conviction marks the UK’s first case against unregistered crypto ATM operations, which totaled £2.6 million in transactions, according to a Financial Conduct Authority release

The case was heard at Westminster Magistrates’ Court, where Osunkoya admitted to operating multiple crypto ATMs without FCA registration, using false documents, and possessing criminal property.

Osunkoya’s illegal ATM network

Osunkoya managed a network of at least 11 crypto ATMs, which processed more than £2.6 million in crypto transactions between December 2021 and September 2023. Despite being refused FCA registration in 2021, he continued running the machines in local convenience stores nationwide

These crypto ATMs, which convert cash into cryptocurrency, were used without standard customer due diligence or source-of-funds checks, raising concerns about money laundering and tax evasion.

The FCA has acted as the anti-money laundering supervisor for UK crypto businesses since January 2020, making registration essential for operating legally. Crypto ATMs in the UK must comply with strict regulations, but currently, no legal operators are registered with the FCA.

The FCA said evidence presented in court showed that Osunkoya attempted to bypass regulations by creating a false identity. He reportedly profited from transaction margins ranging between 10% and 60%. Authorities also found £19,540 in cash, believed to be proceeds from his illegal activities.

The charges against Osunkoya include operating crypto ATMs without FCA registration, creating false documents, and possessing criminal property. He faces potential prison sentences, fines, or both. His sentencing will take place at Southwark Crown Court on a date yet to be confirmed.

Similarly, last month, German authorities confiscated 13 crypto ATMs and seized nearly $28 million in cash from 35 locations nationwide on August 20. The operation, led by BaFin, targeted machines operating without proper licenses, posing money laundering risks.