UK trader denies charges in first-ever illegal crypto ATM prosecution

A London trader has pleaded not guilty to running an illegal crypto ATM business and laundering $395,000 in crime money.

Habibur Rahman, a crypto trader from East Ham, London, pleaded not guilty to charges of operating an illegal crypto ATM business and laundering £300,000 (about $395,000) of criminal money.

Rahman was arrested in April 2023 after police searched his mobile phone store in Chatham, Kent, and seized several crypto ATMs, the BBC reported, citing a Kent Police spokesman. The FCA requires all crypto ATM operators to register with the agency, a requirement Rahman allegedly ignored.

During his trial at Medway Magistrates’ Court, he faced charges of running an unregulated business and illegally converting money into crypto between April and June 2022. Matthew Long, the FCA’s director of payments and digital assets, reiterated the dangers associated with crypto investments: “If you’re using one of these machines you could be giving your money to criminals.”

The FCA has recently expanded its enforcement actions; This is evident in a separate case involving another London trader, Olumide Osunkoya, who was accused of illegally operating multiple crypto ATMs that processed £2.6 million ($3.4 million at the time). Osunkoya subsequently pleaded guilty to five charges of operating an illegal crypto ATM network, the first such conviction in the UK.

This case highlights the FCA’s ongoing crackdown on unregistered crypto activity and reflects a wider initiative to improve regulatory oversight of the cryptocurrency sector. As the risks associated with these operations continue to increase, the FCA appears to be increasingly vigilant in its efforts to protect consumers and maintain financial integrity.