His case marks a big moment for the country as it’s the first prosecution under new money laundering and terrorist financing regulations.
If convicted of all charges, Osunkoya could spend up to 26 years in jail. Let’s discover more about this impressive news about this crypto ATM operator.
Important Lessons from a Crypto ATM Case
Osunkoya operated at least 11 crypto ATMs in the UK without the necessary registration from the Financial Conduct Authority (FCA). Between December 2021 and September 2023, these ATMs, located in local convenience stores, processed over £2.6 million (around $3.5 million) in cryptocurrency transactions. The court revealed that many users of these ATMs were likely involved in illegal activities, such as money laundering or tax evasion.
The ATM operator was making a hefty profit, charging transaction fees that ranged from 10% to 60%. He tried to dodge regulations by using a false name and forging documents to hide his illegal activities. The authorities also found £19,540 (about $26,000) in cash, which they suspect came from his crypto ATM network.
Legal Troubles for UK #Crypto ATM Operator
The Financial Conduct Authority (FCA) in the United Kingdom has filed criminal charges against Olumide Osunkoya for managing a network of cryptocurrency ATMs. Osunkoya is the first individual in the UK to face charges related to… pic.twitter.com/2fQTnkeEIn
— ChainEchoes (@LukasShmutz) September 11, 2024
Following his guilty plea, charges against a second person, Sally Lavington Osunkoya, were dropped. Sentencing for Olumide Osunkoya will happen at a later date.
The FCA has been the UK’s watchdog for Anti-Money Laundering and Counter-Terrorist Financing since January 2020. Despite the rising popularity of cryptocurrency in the country, the FCA ordered the closure of all unregistered crypto ATMs in March 2022. As it stands, there are no legally registered crypto ATM operators in the UK.
FCA Throws Down: First UK Crypto ATM Operator Busted!
The FCA just sent a big “nope” to Olumide Osunkoya for running ghost ATMs – no reg, no rules, pushing £2.6M through the system.
This is the UK’s first hit against rogue crypto ATMs under anti-money laundering laws, and the… pic.twitter.com/4xGi9w5dLe
— Mario Nawfal’s Roundtable (@RoundtableSpace) September 11, 2024
Therese Chambers, the FCA’s joint executive director, has warned crypto users in the UK, stating, “If you’re using a crypto ATM, you are handing your money directly to criminals.” She emphasized that these machines can be exploited to launder money globally. This make it crucial for people to be aware of where their money is going.
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