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
Olumide Osunkoya, a crypto ATM operator in the United Kingdom, has pleaded guilty to operating illegal crypto ATMs and breaking anti-money laundering regulations. This marks the first prosecution of its kind in the UK.
Osunkoya ran a network of at least 11 crypto ATMs in the UK without registering with the Financial Conduct Authority (FCA). These ATMs, which were placed in local convenience stores, handled over £2.6 million (around $3.5 million) in cryptocurrency transactions between December 2021 and September 2023. According to the court, many users of these ATMs were likely engaged in illegal activities, such as money laundering or tax evasion.
The ATM operator charged transaction fees ranging from 10% to 60%, generating a substantial profit. He attempted to evade detection by using a false name and forging documents to conceal his illegal activities. Authorities also discovered £19,540 (about $26,000) in cash, which they believe is linked to his crypto ATM operations.
Following his guilty plea, charges against a second person, Sally Lavington Osunkoya, were dropped. Olumide Osunkoya's sentencing will take place at a later date.
The FCA has been responsible for Anti-Money Laundering and Counter-Terrorist Financing in the UK since January 2020. Despite the increasing popularity of cryptocurrency in the country, the FCA ordered the closure of all unregistered crypto ATMs in March 2022. Currently, there are no legally registered crypto ATM operators in the UK.
Therese Chambers, joint executive director of the FCA, warned crypto users in the UK, "If you're using a crypto ATM, you are handing your money directly to criminals." She highlighted that these machines can be used to launder money across borders, making it essential for individuals to be aware of the ultimate destination of their funds.
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