UK Crypto ATM Operator Pleads Guilty to Fraud and Money Laundering Charges

Olumide Osunkoya, a crypto ATM operator in the United Kingdom, has pleaded guilty to multiple charges, including fraud and money laundering, related to his business operations. If convicted on all charges, Osunkoya could face up to 26 years in prison.

Unregistered Crypto ATMs and Regulatory Violations

The charges stem from Osunkoya's operation of at least 11 crypto ATMs across the UK without the required registration from the Financial Conduct Authority (FCA). According to a September 30 announcement, this case marks the first prosecution under the UK’s money laundering, terrorist financing, and transfer of funds regulations for unregistered crypto ATM operations.

Between December 2021 and September 2023, Osunkoya’s ATMs, installed in convenience stores throughout the country, processed over £2.6 million (approximately $3.5 million) in cryptocurrency transactions. Evidence presented in court suggested that many users of these ATMs were likely involved in illicit activities such as money laundering or tax evasion.

Despite being denied FCA registration in 2021, Osunkoya allegedly continued to expand his crypto ATM network, generating substantial profits. His transaction fees reportedly ranged between 10% and 60%, contributing to his illegal earnings.

Evasion Tactics and Additional Charges

In an effort to avoid regulatory oversight, Osunkoya is accused of creating a false alias and forging documents to conceal his unlawful activities. He also faces charges related to the possession of £19,540 (around $26,000) in cash, suspected to be proceeds from his crypto ATM operations.

The FCA, which has been the UK’s Anti-Money Laundering and Counter-Terrorist Financing supervisor for crypto businesses since January 2020, ordered the closure of all unregistered crypto ATMs in March 2022. Currently, no legally registered crypto ATM operators exist in the UK.

FCA Warnings and Sentencing

The case highlights growing concerns about the misuse of crypto ATMs for illicit activities. In a previous statement, FCA joint executive director Therese Chambers warned the public, “If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.”

Charges against a second individual, Sally Lavington Osunkoya, were dropped following Olumide Osunkoya’s guilty plea. His sentencing is scheduled for a later date, and he faces the possibility of a lengthy prison term if convicted of all charges.