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- A UK man was jailed for operating unregistered crypto ATMs.
- The FCA crackdown disrupted illegal machines across the country.
- This case sets the first criminal sentencing for unregistered crypto activities.
A UK court sentenced Olumide Osunkoya, 46, to four years in prison for running illegal crypto ATMs on 28 February 2025 at Southwark Crown Court. This is the first criminal case in the UK involving unregistered crypto asset services.
Osunkoya was operating crypto ATMs under his business, GidiPlus Ltd, without the required Financial Conduct Authority (FCA) registration. The FCA rejected his registration in December 2021, but he continued to run the machines at 28 sites.
He transferred the machines into a new firm under a false name, running up to 12 ATMs secretly. He failed to conduct proper customer verification, which would have allowed criminals to use the machines to launder money.
FCA Crackdown on Crypto ATMs
FCA has been deactivating illegal crypto ATMs since 2023. It worked with law enforcement to visit 38 sites and shut down 30 machines. The machines allow customers to convert cash into crypto assets without sufficient identity verification, and they pose a money laundering risk.
The UK’s number of crypto ATMs recently dropped significantly. In 2022, there were more than 80 machines, but in 2024, there were none remaining in operation. The FCA warned that cryptocurrency remains high-risk and unregulated in the UK. Consumers should be careful when investing in digital assets.
Osunkoya pleaded guilty to five charges, including forgery, false documents, and possession of criminal property. He made large profits from the operation, charging markups between 30% and 60% on transactions.
The FCA requested confiscation proceedings under the Proceeds of Crime Act. These proceedings aim to recover any illegal earnings from the crypto ATM network.
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