By Nermeen Nabil Khear A United Kingdom court has sentenced an illegal Bitcoin ATM operator to jail for running an unregistered crypto ATM network. The individual, Olumide Osunkoya, was alleged to have carried out his services in the United Kingdom between 2021 and 2022.
In the ruling delivered by Judge Gregory Perrins at the Southwark Crown Court, Osunkoya will serve a jail term of four years for violating regulatory orders. The sentencing follows a plea made by Osunkoya in September 2024, where he pleaded guilty to the allegations against him. According to the authorities, he was charged with five offenses, with two offenses as the director of GidiPlus Ltd, and as a sole trader.
According to authorities, the 46-year-old Osunkoya carried out his crypto ATM services between December 2021 and March 2022 across 28 different locations in the United Kingdom. He operated the machines under his company, GidiPlus, despite not being registered and recognized as a legal crypto ATM service provider. The company applied for registration in 2020 and was refused in 2021.
Illegal crypto ATM operator bags four-year jail term
In the statement released by the Financial Conduct Authority (FCA), Osunkoya carried on with his services despite being refused registration, making his activity a crime under federal law. After his first warning, he transferred the machines from GidiPlus Ltd, operating a reduced 12 ATMs personally. The authorities mentioned that the machines and the business were created under a false name to evade detection.
According to the United Kingdom authorities, Osunkoya failed to carry out standard checks to ensure that the machines were not being used by criminal elements in the crypto industry. The authorities mentioned that the rate at which criminals used the crypto ATMs to launder proceeds of crimes was alarming.
Authorities mentioned that he used fake bank statements to pass the wealth checks of a crypto asset manager. He also attempted to use one of his fake names to incorporate a company in the United Kingdom. He was also charged with possession of criminal property, with regulators seizing £19,540 as proceeds from operating the illegal ATMs. The FCA added that he charged fees ranging from 30% to 60% on each transaction.
In the hearing, Osunkoya was also charged with forgery, using false names and identity documents to carry out his illegal activities. The regulators also charged him with possession of criminal property. During the hearing, the FCA asked the court to approve confiscation proceedings under the Proceeds of Crime Act of 2002. The proceedings will seize all financial benefits he enjoyed during the span of his illegal activities.
United Kingdom’s FCA warns about the dangers in the crypto industry
According to reports, this is the first prosecution for an unregistered crypto activity in the United Kingdom. The prosecution is coming after efforts by the FCA, in partnership with law enforcement agencies, to remove illegal crypto ATMs at different locations in the United Kingdom. In 2023, the FCA recorded great success, removing 30 machines from 38 locations in the United Kingdom.
According to a CoinATMRadar report, the number of crypto ATMs advertised in the United Kingdom has dropped from 80 in 2022 to none in 2024. The FCA still maintains its stance against crypto, warning the general public of the dangers of buying cryptocurrencies, and warning that they may lose all their funds in the process. The FCA has also published a list of suspected ATMs operating in the country without approval on its website.
During Osunkoya’s sentencing, the Judge mentioned that it was not only a regulatory issue, because Osunkoya violated federal law by using a false identity to conceal his real identity. The judge also added that his actions were deliberate and carefully thought out due to the technicality of the plan and how he carried out his activities. FCA enforcement officer, Therese Chambers, also noted the impact of the prosecution, noting that it will send a clear message to other individuals carrying out illegal acts.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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