UK hands down first criminal sentence over illegal crypto ATMs

An illegal crypto ATM operator has been sentenced to serve four years in prison for operating them — in the UK’s first criminal sentencing for unregistered crypto activity. 

Olumide Osunkoya illegally operated a network of crypto ATMs, which he did without the needed regulatory permission, the Financial Conduct Authority (FCA) said in a Feb. 28 statement.

“This is the UK’s first criminal sentencing for unregistered crypto activity and sends a clear message: those who flout our rules, seek to evade detection and engage in criminal activity will face serious consequences,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA.

The FCA charged Osunkoya on Sept. 10 for running crypto ATMs without registration at 28 locations through his company GidiPlus Ltd from December 2021 to March 2022, which processed 2.6 million British pounds ($3.14 million).

He later transferred the ATMs from his company, GidiPlus, and personally operated up to 12 machines under a fake name and company to evade detection. He also failed to ensure they weren’t being used to launder money, the watchdog said.

Osunkoya was also the first person charged in the UK for operating a network of illegal crypto ATMs, and he pleaded guilty to five charges later that month on Sept. 30.

Osunkoya was also sentenced for forgery for creating four bank statements to pass a source of wealth check at a crypto exchange, using a fake identity to spin up a company under an alias and possessing criminal property — 19,540 British pounds ($24,567) in cash obtained by running the illicit ATMs.

“Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator,” said Judge Gregory Perrins in sentencing the 46-year-old Osunkoya at Southwark Crown Court in London.

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“Your actions were deliberate and carefully planned,” Judge Perrins added. “It cannot be said that it is a mere regulatory breach.”

Osunkoya’s sentence comes after a 2023 FCA blitz with local police agencies across the country to weed out illegal crypto ATMs.

The FCA said it visited 38 locations and took down 30 machines, and the number of crypto ATMs advertised on the Coin ATM Radar website went from 80 in 2022 to zero this year.

“The FCA continues to warn people that if you buy crypto, you should be prepared to lose all your money,” the regulator said in its statement. “Crypto remains largely unregulated in the UK and is high risk.”

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