Olumide Osunkoya has pleaded guilty to illegally operating 11 cryptocurrency ATMs, processing more than £2.6 million, marking the first conviction in the UK related to the operation.

On September 30, Olumide Osunkoya pleaded guilty to five charges related to operating an unlicensed cryptocurrency ATM at Westminster Magistrates’ Court in the United Kingdom. This is the first conviction in the UK related to the operation of cryptocurrency ATMs, according to the country’s Financial Conduct Authority (FCA).

According to the FCA, Osunkoya operated at least 11 cryptocurrency ATMs across the UK, processing more than £2.6 million ($3.5 million) between December 2021 and September 2023. Profits from the operation ranged from 10% to 60% per transaction. Osunkoya initially operated as a director of Gidiplus Ltd, before switching to a private practice and continuing to expand his network of illegal cryptocurrency ATMs in convenience stores across the country.

Source: FCA

Although the FCA refused Osunkoya’s registration in 2021, he continued to expand his network of cryptocurrency ATMs. The agency said Osunkoya failed to conduct due diligence checks on his customers, facilitating money laundering and tax evasion. The court was also told that Osunkoya used false aliases to evade FCA oversight.

Serious allegations and warnings from the FCA

Osunkoya faces five charges, including two counts of operating a cryptocurrency ATM without an FCA license, two counts of counterfeiting and forgery, and one count of possessing criminal property. In total, the charges carry a maximum sentence of 14 years in prison, along with a fine. Sentencing is expected to take place at Southwark Crown Court in London, but a specific date has not yet been set.

Following Osunkoya’s case, the FCA issued a statement confirming that there are currently no licensed cryptocurrency ATM operators operating in the UK. Therese Chambers, FCA’s executive director of enforcement and market oversight, stressed: “Our message is clear. If you operate an unauthorised cryptocurrency ATM, we will stop you. If you use a cryptocurrency ATM, you are handing money directly to criminals. Criminals can use cryptocurrency ATMs to launder money globally.”

The FCA also issued a warning to cryptocurrency investors, reminding them of the risk of losing all their investment capital as the market is largely unregulated in the UK. “Cryptocurrencies are largely unregulated in the UK and carry high risks,” the FCA said.