FCA makes first conviction for illegal crypto ATM operation in UK
Date: 2024-10-01 Author: Oliver Abernathy Categories: IN WORLD
Olumide Osunkoya pleaded guilty to operating a crypto ATM network without the approval of the UK Financial Conduct Authority (FCA). His activities, despite being banned, involved processing millions of cryptocurrency transactions, making it the first such case to be heard by a court under anti-money laundering laws.
First conviction for illegal crypto ATM operation in the UK
The FCA announced a judgment against Osunkoya on Monday, who was convicted of operating an illegal crypto ATM network. The case is the first of its kind, as it breached UK anti-money laundering laws. In a statement, the FCA clarified that Osunkoya used at least 11 ATMs for cryptocurrency transactions, through which more than £2.6 million was processed between December 2021 and September 2023.
Courts have shown that his equipment may have been used for money laundering and tax evasion. Despite being refused registration by the FCA back in 2021, Osunkoya continued to operate and even expanded his ATM network, placing them across the UK, mainly in small shops.
Criminal activity and additional charges
The regulator highlighted that in addition to not having an FCA authorization, Osunkoya failed to comply with requirements to check customers and the source of their funds. This allowed criminals to use his network for illegal transactions. Moreover, he is charged with creating false documents and possessing proceeds of crime - more than £19,000 in cash was seized from him, allegedly related to illegal activity.
Osunkoya also misled authorities by claiming he had sold the business to a non-existent person. As a result of his criminal activities, there are currently no legitimate cryptocurrency ATM operators in the UK. Osunkoya is expected to be sentenced at Southwark Crown Court, where he could face up to 14 years in prison.
