UK man pleads guilty to operating illegal ATM network

Olumide Osunkoya pleaded guilty to five charges of operating an illegal crypto ATM network across the United Kingdom, making it the first conviction of its kind in the country.

Osunkoya’s conviction marks the first case brought in the UK against unregistered crypto ATM transactions totaling £2.6 million, the Financial Conduct Authority said.

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

Osunkoya’s illegal ATM network

Osunkoya operated a network of at least 11 crypto ATMs that processed more than £2.6 million of crypto transactions between December 2021 and September 2023. Despite being denied FCA registration in 2021, it continued to operate the machines in local grocery stores across the country.

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

The FCA has been the anti-money laundering custodian for crypto businesses in the UK since January 2020, requiring registration to operate legally. Crypto ATMs in the UK must comply with strict regulations but there are currently no legal operators registered with the FCA.

The FCA said evidence presented in court showed Osunkoya attempted to circumvent regulations by creating a false identity. He reportedly made profits on trading margins ranging from 10% to 60%. Authorities also found £19,540 in cash believed to have been obtained from his illegal activities.

The charges against Osunkoya include operating crypto ATMs without FCA registration, creating false documents and possessing criminal property. He faces possible jail time, a fine, or both. His sentence will be heard at Southwark Crown Court on a date yet to be confirmed.

Similarly, last month, German authorities seized 13 crypto ATMs on August 20 and seized nearly $28 million in cash from 35 locations across the country. The BaFin-led operation targeted machines operating without proper licenses and posing a money laundering risk.