TLDR
- UK courts sentenced Olumide Osunkoya to 4 years in prison for running unauthorized crypto ATMs
- This case marks the first UK criminal prosecution for unregistered crypto activities
- Osunkoya’s illegal ATM network processed £2.6 million across 28 locations
- After initial detection, he created fake identities and companies to continue operations
- Following enforcement actions, advertised crypto ATMs in the UK dropped from 80 to zero
The Financial Conduct Authority (FCA) has announced the first criminal sentencing in the United Kingdom for unregistered cryptocurrency operations. Olumide Osunkoya has received a four-year prison term for running unauthorized crypto ATMs.
The case represents a turning point in UK cryptocurrency regulation enforcement. Osunkoya operated his illegal ATM network without obtaining the required permissions from financial authorities.
The FCA revealed that Osunkoya’s company, GidiPlus Ltd, installed machines at 28 different locations. These ATMs functioned without proper registration for several months.
The operation ran from December 2021 through March 2022. During this period, approximately £2.6 million (about $3.14 million) passed through these unauthorized machines.
When regulators began investigating his activities, Osunkoya changed tactics to avoid detection. He transferred the ATMs away from his registered company GidiPlus.
He then began operating up to 12 machines under a false identity. This deliberate attempt to evade regulatory oversight further complicated the case against him.
From Detection to Prosecution: The Legal Process Unfolds
The regulatory process accelerated in September. On September 10, the FCA formally charged Osunkoya with operating unregistered crypto ATMs.
This charge made him the first person in British history to face criminal prosecution for such activities. The case established an important precedent in cryptocurrency regulation.
Osunkoya’s legal troubles expanded beyond simply running unauthorized machines. He faced additional charges related to document forgery and identity fraud.
He created four counterfeit bank statements to pass verification checks at a crypto exchange. These forged documents helped him maintain access to cryptocurrency markets despite regulatory scrutiny.
The court also found him guilty of creating a fictitious company. He established this business under an alias to continue his underground ATM operations.
An additional charge involved possessing illegal proceeds. Authorities found £19,540 (approximately $24,567) in cash that came directly from his unauthorized ATM business.
The sentencing took place at Southwark Crown Court in London. Judge Gregory Perrins presided over the case and delivered strong comments during the proceedings.
The judge highlighted the deliberate nature of the crimes. “Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator,” Judge Perrins told Osunkoya.
He further emphasized the severity of the actions. “Your actions were deliberate and carefully planned. It cannot be said that it is a mere regulatory breach,” the judge added.
Nationwide Crackdown Shows Results
The conviction follows broader enforcement efforts across the United Kingdom. Throughout 2023, the FCA conducted a coordinated campaign against illegal crypto ATMs.
This initiative involved collaboration with local police forces. Together, they targeted dozens of locations suspected of housing unauthorized machines.
The FCA reports visiting 38 different sites during their enforcement campaign. Their efforts resulted in the removal of 30 illegal crypto ATMs from operation.
The impact of this regulatory crackdown has been substantial. According to the Coin ATM Radar tracking website, the number of publicly advertised crypto ATMs in the UK has plummeted.
The tracking data shows a dramatic decline from 80 machines in 2022. By 2024, that number had fallen to zero publicly advertised crypto ATMs in the entire country.
Therese Chambers, who serves as joint executive director of enforcement at the FCA, commented on the case. “This is the UK’s first criminal sentencing for unregistered crypto activity and sends a clear message,” she stated.
She elaborated on the implications for other potential violators. Those who “flout our rules, seek to evade detection and engage in criminal activity will face serious consequences,” Chambers warned.
The regulator continues to maintain a cautious position on cryptocurrency investments. In their official statement, the FCA included specific warnings for consumers considering crypto purchases.
“The FCA continues to warn people that if you buy crypto, you should be prepared to lose all your money,” the statement reads. They also noted that “Crypto remains largely unregulated in the UK and is high risk.”
The prosecution demonstrates the evolving approach to cryptocurrency regulation. It shows UK authorities are prepared to use criminal law enforcement against those operating outside regulatory boundaries.
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