The UK Financial Conduct Authority (FCA) has for the first time criminally prosecuted the owner of a cryptocurrency ATM network for illegal activity, with a total transaction amount of up to £2.6 million.
Olumide Osunkoya, the alleged owner of the cryptocurrency ATM network, is facing charges including violating anti-money laundering regulations, falsifying documents and possessing criminal property.
According to the FCA, Osunkoya's network processed £2.6 million ($3.4 million) between December 2021 and September 2023 without a valid operating license. This is the first time the FCA has prosecuted an individual for violations related to cryptocurrency ATMs.
Osunkoya’s trial is scheduled for September 30, drawing much public attention to the issue of policing and handling violations in the cryptocurrency sector in the UK. Previously, in April 2023, Habibur Rahman, the operator of another cryptocurrency ATM, was also arrested on money laundering charges and is awaiting trial on October 10.
As of March 2022, the FCA has ordered all unregistered cryptocurrency ATMs to cease operations. Currently, no cryptocurrency ATMs are legally allowed to operate in the UK. The FCA is not only actively investigating violations, but also warning users about the risks of using cryptocurrency ATMs, especially the risk of being used for money laundering purposes.
The prosecution of Osunkoya is an important step forward, affirming the FCA's tough stance on illegal cryptocurrency activities. This move is not only to protect consumer rights, but also to contribute to preventing financial crime and promoting the transparent and sustainable development of the cryptocurrency market in the UK.