Olumide Osunkoya enters a guilty plea in the UK for operating unlicensed cryptocurrency ATMs.
In a news release on Monday, the UK Financial Conduct Authority (FCA) verified that Olumide Osunkoya entered a guilty plea to overseeing an unregistered cryptocurrency ATM network in the UK, involving £2.6 million in transactions between 2021 and 2023.
After the plea, the UK Financial Conduct Authority (FCA) disclosed that Osunkoya failed to perform the required due diligence on clients and continued to operate the unregistered machines despite being denied approval in 2021.
The Unregistered Crypto ATM Activities of Olumide Osunkoya
Through the use of at least 11 crypto ATMs spread among several convenience stores in the UK, Olumide Osunkoya enabled consumers to purchase and sell digital assets without being subject to regulatory scrutiny.
Investigators found that between 2021 and 2023, the machines permitted transactions totaling over £2.6 million ($3.5 million).
According to court filings, Osunkoya neglected to carry out essential customer due diligence, like confirming the source of cash, which raised questions about whether the machines were being used for tax fraud and money laundering.
Osunkoya expanded the network and operated despite being refused registration with the FCA in 2021, all the while using a phony alias to avoid detection.
He also tried to hide his actions and fool authorities by forging paperwork.
Osunkoya is accused of operating unlicensed ATMs and having criminal property, including cash totaling £19,540 ($26,165), allegedly the earnings of his illicit cryptocurrency activities.
At a later time, Southwark Crown Court will hold the sentencing hearing.
First Criminal Case in the UK Regarding Illegal Crypto ATM Network
The FCA has prosecuted a criminal case for unregistered cryptocurrency activities for the first time by the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).
It’s also the first time someone has been prosecuted in the UK for running an illicit network of cryptocurrency ATMs. As of right now, the nation has no legitimate cryptocurrency ATM operators.