FCA Brings First Criminal Charges Against Operator of Illegal Crypto ATM Network

The Financial Conduct Authority (FCA) has brought criminal charges against 45-year-old London resident Olumide Osunkoya for illegally operating a network of unregistered cryptocurrency ATMs across the United Kingdom. According to the regulatory watchdog, Osunkoya operated crypto ATMs that processed £2.6 million in cryptoasset transactions between 29 December 2021 and 8 September 2023 without obtaining the required FCA registration. The operations were conducted initially through Gidiplus Ltd and later as a sole practitioner. This marks the FCA's first criminal prosecution for unregistered cryptoasset activity under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). It is also the first time charges have been brought against an individual accused of running a network of crypto ATMs in the country. In addition to MLR violations, Osunkoya faces charges under the Forgery and Counterfeiting Act 1981 for creating and using false documents, as well as an offense under the Proceeds of Crime Act 2002 for possession of suspected criminal property. The FCA emphasized that there are currently no legal or registered crypto ATM operators in the UK. Regulatory officials warned the public that anyone using a crypto ATM is dealing with an illegal operation that can be exploited by criminals to launder funds globally. The charges follow joint enforcement actions between the FCA and law enforcement agencies—including the Metropolitan Police and regional organized crime units—which inspected dozens of suspected sites and shut down 26 illegal machines nationwide. The regulator continues to warn consumers that cryptoassets are largely unregulated, highly volatile, and carry a high risk of total capital loss. Osunkoya is scheduled to appear at Westminster Magistrates’ Court on 30 September 2024.