Crypto ATM operator pleads guilty to multiple offences

Central Criminal Court in London, UK. Old Bailey. Court of Law in London.
Editorial credit: Tupungato / Shutterstock.com

A London resident accused of operating a nationwide network of crypto ATMs has admitted to five charges during a hearing at Westminster Magistrates’ Court.

Olumide Osunkoya is scheduled to be sentenced for operating multiple crypto ATMs without Financial Conduct Authority (FCA) registration, creating and using false documents and possessing criminal property. 

The FCA initially identified Osunkoya in early September, revealing that he had managed a network of at least 11 crypto ATMs, which facilitated over £2.6m in crypto transactions between 29 December 2021 and 8 September 2023.

This case marks the first conviction of its kind in the UK for offences related to operating a crypto ATM network. However, it is not the first charge related to running a crypto ATM overall. The initial charge was brought against the owner of an electronics store in Chatham, Kent, in the summer of 2023.

Despite being denied registration with the FCA in 2021, Osunkoya persisted in operating and expanding his network of crypto ATMs in local convenience stores throughout the UK. He failed to perform any customer due diligence or source of funds checks on those using the ATMs, raising significant concerns about the integrity of his operations.

Evidence presented in court suggested that his machines were likely used by individuals engaged in money laundering or tax evasion and it is suspected that Osunkoya profited substantially from these activities, with the court hearing that Osunkoya is suspected to have received a profit margin on each transaction ranging between 10% and 60%.

To evade FCA regulations, he even adopted a false alias, though this tactic ultimately proved futile.

At the time of being charged, Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, said: “Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you. If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.”

Sentencing for these offences is scheduled to take place at Southwark Crown Court, with the date yet to be confirmed.