Osunkoya Jailed for Operating Cryptocurrency ATMs Without a License

In a landmark case, the UK sentenced a man to four years in prison for illegally operating cryptocurrency ATMs. It makes it the country's first criminal case

The Financial Conduct Authority (FCA) has closed a landmark case which saw a man sentenced to four years in prison for illegally operating cryptocurrency ATMs.

It marks the UK’s first criminal case involving unauthorized crypto activity and saw 46-year-old Olumide Osunkoya convicted of five charges.

Osunkoya was running 28 cryptocurrency ATMs through his company, GidiPlus Ltd., between December 2021 and March 2022 without being authorized by the FCA.

After the regulator refused to register the company and notified GidiPlus that it would be shutting down the machines, Osunkoya moved the property of the company and continued to manage a smaller network of 12 cryptocurrency ATMs under a different identity.

The court heard that the company did not carry out the required customer application and verification procedures to prevent money laundering. It was also not able to pay back the money held in its client account.

Osunkoya was arrested in September 2024 and later pleaded guilty to five charges. These included offenses related to fraud, the possession of criminal property and an attempt to manage a network of cryptocurrency ATMs without authorization.

The case was heard at Kingston Crown Court, where Osunkoya was sentenced on February 20, 2025.

The judge found that Osunkoya had been trying to avoid detection and that the offenses were not the result of carelessness but rather deliberate actions.

It was also highlighted that attempts had been made to conceal the unlawful activity from the authorities. The offense was described as more than a simple regulatory breach.

Earlier this year, the FCA issued a statement highlighting its ongoing collaboration with law enforcement to combat the surging volume of crypto-related scams.

The regulator has been investigating multiple locations and disrupting the operation of unlicensed crypto ATMs throughout the country.

In 2022, at the height of the crypto scam wave, there were more than 80 such machines in the UK. By 2024, none remain operational.

As part of its efforts, the FCA has also been advising members of the public about the significant risks involved in cryptocurrency investments.

The City regulator has warned that such transactions are largely unregulated and those who engage in them may lose all of their invested capital.

It was further confirmed that there will now be confiscation proceedings under the Proceeds of Crime Act 2002 to recover any financial gains.