UK Man Sentenced to Four Years in Prison for Illegal Crypto ATM Operation
Olumide Osunkoya, a 46-year-old man, has been sentenced to four years in prison for illegally operating cryptocurrency automated teller machines in the United Kingdom. Osunkoya faced charges related to running crypto ATMs through his company, GidiPlus, with machines installed at multiple locations across the UK.
Authorities revealed that Osunkoya set up a £2.5 million ($3.2 million) crypto ATM business despite being denied registration by the Financial Conduct Authority. The FCA filed charges against him in early September 2024, and he pleaded guilty to six counts on September 30, 2024.
On Feb. 28, the court convicted him of unregistered crypto activity, forgery, possession and use of false identity documents, and criminal property possession.
Illegal Operation and Consequences
Court documents showed that Osunkoya operated his unregistered crypto business between December 2021 and March 2022, making significant profits by charging markup fees between 30% and 60% on transactions. His Honour Judge Perrins, during sentencing, stated, “Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator.”
The judge also highlighted that Osunkoya went to great lengths to create a false identity, making his case more than a mere regulatory breach.
FCA Crackdown and Regulatory Compliance
Therese Chambers, executive director of enforcement at the FCA, emphasized that Osunkoya’s case is the UK’s first criminal sentencing for unregistered crypto activity, sending a clear message that those engaging in illegal activities will face serious consequences. The FCA aims to intensify its crackdown on illegal crypto-related operations and services, requiring providers to register and comply with anti-money laundering guidelines.
The FCA’s crackdown on illegal crypto teller machines saw the number of UK crypto ATM locations on CoinATMRadar drop from 80 in 2022 to zero in 2024. Currently, there are over 37,200 crypto ATMs installed in 69 countries, with the majority in the United States, boasting over 29,700 locations.
Conclusion
Osunkoya’s sentencing serves as a warning to those operating illegal crypto businesses, highlighting the importance of regulatory compliance in the cryptocurrency industry. The FCA’s efforts to curb illegal activities in the sector are crucial in maintaining the integrity of financial markets and protecting consumers.