Nigerian operator pleads guilty to £2.6 million unregistered scheme!

In the UK, Olumide Osunkoya pleaded guilty to 5 offences, marking the first conviction of this kind in the UK for offenses relating to the operation of crypto ATMs. He is due to be sentenced for operating multiple crypto ATMs without registering with the FCA, creating and using false documents, and possessing criminal property.

Osunkoya illegally operated a network of at least 11 crypto ATMs, which processed more than £2.6 million in crypto transactions.

Key points:

Nigerian national and UK resident Olumide Osunkoya pleaded guilty to operating at least 11 illegal crypto ATMs across the UK, which processed more than £2.6 million ($3.5 million) between December 29, 2021 and September 8, 2023 .

The FCA has confirmed that there are no legal crypto ATM operators in the UK.

Osunkoye faces up to 14 years in prison for various offenses including forgery, counterfeiting and possession of criminal property.

Brief description:

Olumide Osunkoya has become the first person in the UK to be convicted of operating unregistered crypto ATMs. Operating 11 ATMs in local stores, Osunkoya processed more than £2.6 million ($3.5 million) in cryptocurrency transactions between December 2021 and September 2023. Despite being denied FCA registration, he continued to operate, making profits of up to 60% on each transaction.

Osunkoyi ATMs did not conduct any customer verification, raising serious concerns about money laundering and tax evasion. The court heard evidence that the users were likely to include criminals who used the machines to launder illicit funds. Osunkoya even operated under a false name to avoid regulatory oversight.

Accused of numerous crimes, including operations with unregistered crypto ATMs and forgery, Osunkoya faces up to 14 years in prison. He will be sentenced at Southwark Crown Court.

Compliance information:

The case highlights the importance of regulatory compliance in the cryptocurrency space, especially for operators of risky services such as crypto ATMs. The FCA's tough stance on unregistered cryptocurrency activity signals increased enforcement action, and companies must ensure they comply with all regulatory requirements to avoid significant fines.

Olumide Osunkoya's sentencing marks a major milestone for UK regulators in the fight against illicit cryptocurrency activity. With the FCA confirming that there are no legal crypto ATMs currently operating in the UK, businesses and consumers must remain vigilant. Cryptocurrencies remain a largely unregulated, high-risk space, and both operators and users must understand the potential legal consequences of circumventing compliance requirements. The FCA's warning is clear: unregistered crypto ATMs are a tool of criminals, and those who operate or use them risk serious legal penalties.

Call for information:

Are you aware of unregistered crypto ATMs or other suspicious crypto activity? FinTelegram encourages you to report any suspicions or information that may help expose illegal cryptocurrency transactions. Your information will help prevent money laundering and protect legitimate investors.