First Case Involving Illegal Crypto ATMs Charged In UK
Key Points:
- Olumide Osunkoya became the first person in the UK to be convicted for operating an illegal crypto ATM network.
- Osunkoya operated at least 11 crypto ATMs without FCA registration, failing to conduct necessary customer due diligence.
Olumide Osunkoya has become the first time been convicted of running an unregistered cryptocurrency Automated Teller Machine network in the United Kingdom.
Read more: Crypto ATMs Face Increased Scrutiny From UK Regulator
First UK Conviction for Running Illegal Crypto ATMs
Osunkoya pleaded guilty to five charges, including running illegal crypto-currency Automated Teller Machines, possession of false documents, and criminal property. The case involved over £2.6 million in transactions and was before Westminster Magistrates Court.
In a statement, the FCA said the 45-year-old operated a network of at least 11 illegal crypto ATMs between December 2021 and September 2023. The machines, which were fitted across the UK in local shops, allowed people to convert cash into cryptocurrency. By law, Osunkoya had failed to register the ATMs with the FCA. His application for registration was refused in 2021, but he carried on operating and expanding the network.
The court was told that Osunkoya had conducted no customer due diligence and no source-of-funds checks in contravention of anti-money laundering obligations. Authorities believe Osunkoya made a good deal of profit from the venture, with the transaction fees said to vary from 10% to 60%. Secondly, £19,540 in cash was found on him, which is suspected to relate to the illegal enterprise.
Osunkoya also attempted to evade detection by adopting a false identity. He will be sentenced at Southwark Crown Court on a date to be assigned. He faces a possible long prison sentence, significant fines, or both.
FCA Ramps Up Clampdown on Illegal Crypto ATMs
The conviction is a further indication of the FCA’s work in cracking down on crypto ATMs operating outside the law. The FCA has been working closely with police forces to shut down crypto ATMs operating without their registration, visiting 34 suspected sites and decommissioning 26 machines this year alone.
Despite being fairly popular in a number of countries, such as the U.S. and Germany, crypto ATMs have no legally registered operators in the UK.
In the meantime, at the end of August 20, German authorities managed to withdraw more than $28 million in cash from 35 locations across the country and confiscated 13 illegal crypto ATMs.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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First Case Involving Illegal Crypto ATMs Charged In UK
Key Points:
- Olumide Osunkoya became the first person in the UK to be convicted for operating an illegal crypto ATM network.
- Osunkoya operated at least 11 crypto ATMs without FCA registration, failing to conduct necessary customer due diligence.
Olumide Osunkoya has become the first time been convicted of running an unregistered cryptocurrency Automated Teller Machine network in the United Kingdom.
Read more: Crypto ATMs Face Increased Scrutiny From UK Regulator
First UK Conviction for Running Illegal Crypto ATMs
Osunkoya pleaded guilty to five charges, including running illegal crypto-currency Automated Teller Machines, possession of false documents, and criminal property. The case involved over £2.6 million in transactions and was before Westminster Magistrates Court.
In a statement, the FCA said the 45-year-old operated a network of at least 11 illegal crypto ATMs between December 2021 and September 2023. The machines, which were fitted across the UK in local shops, allowed people to convert cash into cryptocurrency. By law, Osunkoya had failed to register the ATMs with the FCA. His application for registration was refused in 2021, but he carried on operating and expanding the network.
The court was told that Osunkoya had conducted no customer due diligence and no source-of-funds checks in contravention of anti-money laundering obligations. Authorities believe Osunkoya made a good deal of profit from the venture, with the transaction fees said to vary from 10% to 60%. Secondly, £19,540 in cash was found on him, which is suspected to relate to the illegal enterprise.
Osunkoya also attempted to evade detection by adopting a false identity. He will be sentenced at Southwark Crown Court on a date to be assigned. He faces a possible long prison sentence, significant fines, or both.
FCA Ramps Up Clampdown on Illegal Crypto ATMs
The conviction is a further indication of the FCA’s work in cracking down on crypto ATMs operating outside the law. The FCA has been working closely with police forces to shut down crypto ATMs operating without their registration, visiting 34 suspected sites and decommissioning 26 machines this year alone.
Despite being fairly popular in a number of countries, such as the U.S. and Germany, crypto ATMs have no legally registered operators in the UK.
In the meantime, at the end of August 20, German authorities managed to withdraw more than $28 million in cash from 35 locations across the country and confiscated 13 illegal crypto ATMs.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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