First Criminal Sentence: UK Crypto ATM Case Ruled
In a landmark case for the UK, a crypto ATM operator who dared to skirt the law has been handed a four-year prison sentence. This marks the first time someone in the UK has faced criminal charges for operating cryptocurrency services without registering them.
The Financial Conduct Authority (FCA) revealed on February 28th that Olumide Osunkoya was running a network of crypto ATMs illegally. He simply hadn’t obtained the necessary green light from regulators, stated the FCA in their official announcement.
Therese Chambers, a top enforcement official at the FCA, put it plainly: “This first-of-its-kind criminal sentence makes it crystal clear. If you ignore the rules, try to hide your activities, and get involved in illegal crypto operations, expect serious consequences.”
Back on September 10th, the FCA formally accused Osunkoya of deploying unregistered crypto ATMs across 28 locations under his company, GidiPlus Ltd. Between December 2021 and March 2022, these ATMs processed a whopping 2.6 million British pounds (around $3.14 million).
Adding another layer to his scheme, Osunkoya then moved the ATMs out from under GidiPlus. He personally ran up to a dozen machines using a fake name and a fabricated company, all in an attempt to fly under the radar. The watchdog also pointed out his failure to put measures in place to prevent money laundering through these machines.
Osunkoya also holds the dubious distinction of being the first person in the UK ever charged for running an illicit crypto ATM network. He admitted guilt to five charges just weeks later, on September 30th.
Source: FCA
The sentencing didn’t stop there. Osunkoya was also penalized for forgery – he’d cooked up four fake bank statements to pass a source of wealth check at a crypto exchange. He also used a false identity to create a shell company and was found in possession of £19,540 (about $24,567) in criminal cash, the profits from his illegal ATM business.
Judge Gregory Perrins, when handing down the sentence at Southwark Crown Court in London to the 46-year-old Osunkoya, stated bluntly, “Your choice to continue operating outside the law was a clear and calculated act of defiance against the regulator.”
Judge Perrins further emphasized, “Your actions weren’t just a simple oversight; they were deliberate and meticulously planned. This goes far beyond a mere regulatory slip-up.”
Osunkoya’s sentencing follows a proactive crackdown by the FCA in 2023. Working with local police, they set out to dismantle the network of illegal crypto ATMs across the UK.
The FCA detailed their efforts, mentioning visits to 38 locations which led to the removal of 30 machines. Interestingly, the number of crypto ATMs listed on the Coin ATM Radar website plummeted from 80 in 2022 to zero this year, suggesting a significant impact.
In their statement, the FCA reiterated a strong warning to the public: “Remember, if you decide to buy crypto, be prepared for the possibility of losing all your money. Crypto in the UK remains largely unregulated and carries high risk.”
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