Olumide Osunkoya has pleaded guilty to five offenses related to the operation of illegal crypto ATMs in the UK during a hearing at Westminster Magistrates’ Court. This case marks a significant milestone as it is the first conviction in the UK for such offenses, according to a statement from the Financial Conduct Authority (FCA).
Osunkoya operated at least 11 illegal crypto ATMs across the UK, processing transactions exceeding £2.6 million ($3.5 million) from December 2021 to September 2023. The FCA reported profit margins on each transaction ranged between 10% and 60%.
Initially serving as a director of Gidiplus Ltd, Osunkoya later operated under his own name, expanding his network of crypto ATMs in local convenience stores despite the FCA denying his registration in 2021. The court revealed that he did not conduct proper customer due diligence checks, and evidence suggested that users of these machines included individuals involved in money laundering and tax evasion.
On September 10, Osunkoya faced charges for two counts of operating crypto ATMs without FCA registration. He could face up to two years in prison, fines, or both. Additionally, he faces two more charges related to forgery and counterfeiting, which carry a potential sentence of up to 10 years. On top of that, Osunkoya is charged with possession of criminal property, specifically £19,540 ($26,160) in cash, linked to the proceeds of his illegal operations, which could lead to a maximum of 14 years in prison.
Sentencing is scheduled to take place at London’s Southwark Crown Court, with a date yet to be confirmed. Following Osunkoya’s case, the FCA has reiterated that there are no legal crypto ATM operators in the UK. The FCA’s joint executive director, Therese Chambers, emphasized the risks associated with using illegal crypto ATMs, stating that individuals using these machines risk losing their money to criminals.
The FCA continues to warn cryptocurrency buyers to be aware of the high risks associated with crypto investments, highlighting that the sector remains largely unregulated in the UK.
