- A man got four years in prison for running unregistered crypto ATMs without approval in the UK.
- Authorities shut down illegal crypto ATMs and warned that digital assets are risky and mostly unregulated.
- The FCA removed illegal crypto ATMs and aims to recover money made from the crime under UK law.
A man has been sentenced to four years in prison for illegally operating a network of cryptocurrency ATMs in the United Kingdom. This marks the country’s first criminal conviction for unregistered crypto activity.
Unregistered Crypto ATMs Operated Nationwide
Olumide Osunkoya managed crypto ATMs without the required regulatory approval. According to the Financial Conduct Authority in the UK he managed these machines via his company GidiPlus Ltd throughout December 2021 until March 2022. A total of 28 ATMs operated by this criminal organization handled £2.6 million ($3.14 million) in transactions.
Authorities charged him on September 10 for operating without registration. To evade detection, he later moved the machines from GidiPlus Ltd and continued running up to 12 ATMs under a false name and company. He also failed to prevent their use in money laundering activities.
Forgery and Criminal Property Possession
In addition to running unregistered ATMs, Osunkoya was convicted of forgery. He created false bank statements to pass wealth checks at a cryptocurrency exchange. He also used a fake identity to establish a company under an alias. Law enforcement discovered that he had £19,540 ($24,567) in cash obtained from the illegal ATM operations.
On September 30, Osunkoya pleaded guilty to five charges, including running unregistered crypto ATMs, forgery, and possessing criminal property. The court found that he deliberately ignored regulations and engaged in calculated illegal activity.
Regulatory Crackdown on Illegal Crypto ATMs
The Financial Conduct Authority has strengthened its dedication to remove all unapproved crypto ATMs throughout the UK territory. The agency worked with local police forces to conduct 38 checks which resulted in the closure of thirty unlawful machines in 2023. The decrease in crypto ATMs in the country went from 80 in 2022 to a complete absence by 2024.
Authorities have warned that crypto remains largely unregulated in the UK. Consumers using digital assets should be prepared for the risk of losing all their money. Meanwhile, confiscation proceedings under the Proceeds of Crime Act 2002 are set to recover financial gains from Osunkoya’s illegal operations.
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