UK Issues First Criminal Sentence for Illegal Crypto ATMs

Olumide Osunkoya has been sentenced to four years in prison after operating a network of unregistered cryptocurrency ATMs in the UK, marking the country’s first criminal sentencing related to illegal crypto activity. Osunkoya, 46, was convicted of running crypto ATMs without the necessary regulatory permission, according to the Financial Conduct Authority (FCA).

A Landmark Case in the UK’s Crypto Regulation

The sentencing, announced on February 28, 2025, represents a significant milestone in the UK's efforts to regulate cryptocurrency operations. The FCA stated that this case sends a clear message to anyone attempting to operate illegally in the crypto space: “Those who flout our rules, seek to evade detection, and engage in criminal activity will face serious consequences,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA.

Osunkoya’s illegal operations spanned from December 2021 to March 2022, during which he managed a network of crypto ATMs across 28 locations through his company, GidiPlus Ltd. The machines processed a total of 2.6 million British pounds (approximately $3.14 million) in transactions. Despite lacking the necessary registration with the FCA, Osunkoya continued operating these ATMs, eventually transferring them to a personal operation using a fake identity to avoid detection.

Deceptive Tactics and Financial Crimes

In addition to operating illegal ATMs, Osunkoya’s actions included money laundering risks, as he failed to ensure the machines weren’t used for illicit financial activities. Osunkoya also used fraudulent means to pass a “source of wealth” check at a crypto exchange, creating four forged bank statements. His illegal operations also included the possession of criminal property: £19,540 (around $24,567) in cash, which was obtained from running the unregistered ATMs.

The FCA’s investigation culminated in September 2022, when Osunkoya was charged for operating a network of illegal crypto ATMs. He pleaded guilty to five charges later that month. Judge Gregory Perrins, who sentenced Osunkoya at Southwark Crown Court in London, criticized the defendant’s deliberate and calculated actions. “Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator,” Judge Perrins stated. “Your actions were deliberate and carefully planned. It cannot be said that it is a mere regulatory breach.”

A Major Blow to the Crypto ATM Industry in the UK

Osunkoya’s case comes on the heels of a broader crackdown by the FCA on illegal crypto ATMs across the UK. In 2023, the FCA, in collaboration with local police, launched a blitz to dismantle illicit crypto operations. The initiative led to the closure of 30 machines across 38 locations, reducing the number of crypto ATMs in the UK from 80 in 2022 to zero in 2023, according to data from the Coin ATM Radar website.

The FCA continues to warn the public about the high risks associated with unregulated crypto operations. “If you buy crypto, you should be prepared to lose all your money,” the regulator cautioned in its statement. Despite the increasing popularity of cryptocurrencies, the UK’s crypto market remains largely unregulated, and activities like operating unregistered crypto ATMs are considered illegal and subject to severe penalties.

Osunkoya’s conviction serves as a stern warning to anyone considering similar illegal activities in the burgeoning crypto space, signaling that authorities are taking a firm stance against unregistered crypto operations in the UK.