Mr Olumide Osunkoya pleaded guilty to 5 offences at today’s hearing at Westminster Magistrates’ Court. This is the first UK conviction of its kind for offences relating to the operation of crypto ATMs.
Mr Osunkoya is due to be sentenced for running multiple crypto ATMs without FCA registration, creating and using false documents, and for possession of criminal property.
Mr Osunkoya illegally operated a network of at least 11 crypto ATMs which processed more than £2.6m in crypto transactions between 29 December 2021 and 8 September 2023.
He continued to operate and grow the crypto ATM network in local convenience shops across the UK despite being refused for registration with the FCA in 2021. Mr Osunkoya completed no customer due diligence or source of funds checks on those who used the crypto ATMs.
The court heard evidence that those likely committing money laundering or tax evasion were using his machines. Mr Osunkoya is suspected to have made substantial profit from the operation.
The court also heard that Mr Osunkoya created a false alias to try and evade FCA rules.
Sentencing for the offences will take place at Southwark Crown Court at a date to be confirmed.
Background
- Mr Osunkoya’s date of birth is 7 February 1979.
- FCA charges first individual with running a network of illegal crypto ATMs. The charges mark the FCA's first criminal prosecution relating to unregistered cryptoasset activity under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). These are also the first charges brought against a person accused of running a network of crypto ATMs in the UK.
- Mr Osunkoya first acted as a director of a company, Gidiplus Ltd, and later as a sole practitioner. He is being charged with 2 offences under Regulations 86 and 92 of the MLRs for operating crypto ATMs without FCA registration. The maximum sentences for this are up to 2 years in prison, or a fine, or both. Mr Osunkoya is also the first person to appear before the UK courts for crypto ATM offences.
- The court heard that Mr Osunkoya is suspected to have made substantial profit from the operation receiving a margin on each transaction ranging between 10% and 60%.
- Mr Osunkoya is also charged with 2 offences under the Forgery and Counterfeiting Act 1981 relating to false documents created and used during the above activity. Plus, an offence of possession of criminal property, £19,540 in cash, under the Proceeds of Crime Act 2002 relating to the suspected proceeds of his crypto ATM business. Mr Osunkoya falsely told the FCA that he had sold the crypto ATM network to an individual which the evidence showed did not exist. The maximum sentence for the offences of forgery and using a false instrument is up to 10 years in prison, or a fine, or both. And, the maximum sentence for an offence of possession of criminal property is up to 14 years in prison, or a fine, or both.
- Regulation 92 of the MLRs states that where a body corporate, like GidiPlus Ltd, commits such an offence, an officer of that body corporate, such as a director of that body, is also guilty of the underlying offence where it was either committed with the consent or connivance of the officer, or is otherwise attributable to any neglect on the part of the officer.
- Gidiplus applied for registration under the Money Laundering Regulations in 2020 and was refused in 2021.
- Charges in relation to Sally Lavington Osunkoya were withdrawn by the FCA following Mr Osunkoya’s guilty pleas.
- The FCA has been the anti-money laundering and counter-terrorist financing (AML/CTF) supervisor of UK cryptoasset businesses since 10 January 2020.
- Crypto ATMs are machines that allow you to buy or convert money into cryptoassets. There are currently no legal crypto ATM operators in the UK.
- The FCA published a list of cryptoasset businesses that are operating without our authorisation.
- Find out more information about the FCA.
