UK Hands Down First Criminal Sentence for Illegal Crypto ATMs
In a landmark case for financial regulation, a UK court has sentenced an illegal crypto ATM operator to four years in prison, marking the country’s first criminal sentencing for unregistered cryptocurrency activities.
Illegal Crypto ATM Network Exposed
Olumide Osunkoya was found guilty of unlawfully operating a network of cryptocurrency ATMs without the necessary regulatory approval, according to a statement released by the Financial Conduct Authority (FCA) on February 28.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, emphasized the significance of the ruling, stating, “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.”
Unregistered Crypto Transactions Worth Millions
The FCA charged Osunkoya on September 10 for operating unregistered crypto ATMs at 28 locations through his company, GidiPlus Ltd, between December 2021 and March 2022. These machines processed transactions amounting to 2.6 million British pounds ($3.14 million).
In an attempt to evade detection, Osunkoya later transferred the ATMs from GidiPlus and personally operated up to 12 machines under a fraudulent company name. He also failed to implement anti-money laundering (AML) measures, allowing illicit financial activities to go unchecked, the regulator reported.
Fraudulent Activities and Sentencing
Osunkoya was the first individual in the UK to face prosecution for running an illegal crypto ATM network. On September 30, he pleaded guilty to five charges, including forgery and financial misconduct.
In addition to operating unauthorized ATMs, Osunkoya was sentenced for forging four bank statements to pass a source of wealth check at a cryptocurrency exchange. He also used a fake identity to establish a company under an alias and was found in possession of criminal property—19,540 British pounds ($24,567) in illicit cash earnings from the illegal ATMs.
Judge Gregory Perrins, presiding over the case at Southwark Crown Court in London, condemned Osunkoya’s actions, stating, “Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator.” He further asserted, “Your actions were deliberate and carefully planned. It cannot be said that this is a mere regulatory breach.”
FCA’s Crackdown on Illegal Crypto ATMs
Osunkoya’s sentencing follows an aggressive enforcement campaign launched by the FCA in 2023, in collaboration with local law enforcement, to dismantle illegal cryptocurrency ATMs across the UK.
During this operation, the FCA inspected 38 locations, successfully shutting down 30 unauthorized machines. As a result, the number of crypto ATMs listed on the Coin ATM Radar website plummeted from 80 in 2022 to zero in 2024.
The FCA continues to warn investors about the risks associated with cryptocurrency, reiterating in its statement, “If you buy crypto, you should be prepared to lose all your money. Crypto remains largely unregulated in the UK and is high risk.”
