Key Takeaways
- The man was charged with operating at least 11 crypto ATMs that handled more than $3.4 million
- He reportedly profited by charging transaction fees as high as 60%.
Olumide Osunkoya, 45, has admitted to illegally running a network of cryptocurrency ATMs in the UK, marking the first conviction of its kind in the country. The Financial Conduct Authority (FCA) announced the guilty plea in a statement on Monday, following his appearance at Westminster Magistrates’ Court.
Osunkoya was charged with operating at least 11 crypto ATMs that handled more than £2.6 million ($3.4 million) in transactions between December 2021 and September 2023. According to FCA, the machines, located in convenience stores across the UK, were run without its approval after his registration request was denied in 2021.
The court heard that Osunkoya failed to carry out essential checks on his customers, such as verifying their identities or investigating the sources of their funds. The FCA suspects that many of the users of his ATMs were involved in illegal activities, including money laundering and tax evasion.
Despite being refused registration, Osunkoya continued to expand his ATM network. He reportedly profited by charging transaction fees as high as 60%. The investigation also revealed that he used a false alias and forged documents to hide his illegal operations.
Charged earlier in September under anti-money laundering regulations, Osunkoya faces a maximum potential sentence of 26 years in prison. His sentencing will take place at Southwark Crown Court, though the date has not yet been set.
In addition to his ATM network, Osunkoya was found with £19,540 ($26,000) in cash, which authorities believe are proceeds from his illegal activities. A second person, Sally Lavington Osunkoya, had charges against her dropped after his guilty plea.
The FCA has been increasing its enforcement against illegal crypto operations. In 2022, the regulator ordered the closure of all unregistered crypto ATMs in the UK. By the end of 2023, it had conducted inspections at 34 locations, including sites in Exeter, Nottingham, and Sheffield.
Earlier in September, seven Senate Democrats urged the top 10 bitcoin ATM operators in the U.S. to address the rising tide of crypto fraud targeting elderly Americans.
As per a recent data, the total number of Bitcoin ATMs worldwide decreased by 600 in the first two months of Q3 2024, with the United States topping the list with more shutdowns.
The United States Federal Trade Commission (FTC) data revealed that losses from Bitcoin ATM scams surpassed $110 million in 2023. As per data from Coin ATM Radar, the global Bitcoin ATM network lost a net total of 435 and 182 machines in the months of July and August, respectively.
