A UK court has handed down the country’s first criminal sentence for unregistered crypto activity, sentencing Olumide Osunkoya to four years in prison for operating illegal crypto ATMs.
Illegal Crypto ATM Network Uncovered
Osunkoya ran a network of cryptocurrency ATMs without regulatory approval, the Financial Conduct Authority (FCA) revealed in a statement on February 28. His company, GidiPlus Ltd, operated these machines at 28 locations between December 2021 and March 2022, processing around £2.6 million ($3.14 million).
After authorities began investigating, Osunkoya attempted to evade detection by transferring the ATMs to his personal control, using a fake identity and company name. The FCA also found that he failed to implement anti-money laundering measures, allowing potential misuse of the machines for illicit transactions.
Charges and Sentencing
The FCA charged Osunkoya on September 10, making him the first individual in the UK to face prosecution for running illegal crypto ATMs. He pleaded guilty to five charges on September 30.
In addition to running unregistered crypto machines, Osunkoya was convicted of forgery for fabricating four bank statements to pass a wealth check at a crypto exchange. He also used a fake identity to establish a company and was found in possession of £19,540 ($24,567) in illicit cash.
Judge Gregory Perrins, presiding over the case at Southwark Crown Court, stated that Osunkoya’s actions were “deliberate and carefully planned” and went beyond a mere regulatory breach.
FCA’s Crackdown on Illegal Crypto ATMs
Osunkoya’s sentencing follows a broader effort by the FCA and local police to dismantle illegal crypto ATMs across the UK. In 2023, authorities inspected 38 locations and shut down 30 machines. The number of crypto ATMs listed on the Coin ATM Radar website dropped from 80 in 2022 to none in 2024.
The FCA continues to warn consumers about the risks of cryptocurrency investments. “If you buy crypto, you should be prepared to lose all your money,” the regulator stated, emphasizing that crypto remains largely unregulated in the UK.
