Crypto ATM Operator Faces 26 Years in Jail for UK Fraud and Money Laundering
Olumide Osunkoya, the operator of a network of crypto ATMs in the UK, has pleaded guilty to multiple charges including fraud and money laundering. He could face up to 26 years in prison if convicted of all charges.
Osunkoya operated at least 11 crypto ATMs across the UK without the required Financial Conduct Authority (FCA) registration. The ATMs processed over £2.6 million (~$3.5 million) in crypto transactions between December 2021 and September 2023.
A Case of Unregistered Operations and Alleged Money Laundering
Evidence presented in court suggests that many of the ATM users were likely involved in money laundering or tax evasion. Authorities allege that Osunkoya continued to operate his network despite being denied registration with the FCA in 2021. He also allegedly made substantial profits from the operation, with transaction fees ranging between 10% and 60%.
Osunkoya is accused of attempting to evade regulations by creating a false alias and forging documents to conceal his illegal activities. He was also charged with possessing £19,540 (~$26,000) in cash, suspected to be proceeds from his crypto ATM network.
The FCA has been the UK’s Anti-Money Laundering and Counter-Terrorist Financing supervisor for crypto asset businesses since January 2020. In March 2022, the FCA ordered the closure of all unregistered crypto ATMs in the UK, citing concerns about money laundering and criminal activity. There are currently no legally registered crypto ATM operators in the UK.
This case serves as a reminder of the importance of regulatory compliance in the cryptocurrency space. The FCA has warned crypto users in the UK to be cautious of unregistered crypto ATMs, as they could be used by criminals for money laundering.
