A UK-based crypto ATM owner, Olumide Osunkoya, has pleaded guilty to multiple charges, including fraud and money laundering. Operating without the necessary Financial Conduct Authority (FCA) registration, Osunkoya’s actions have led to the first prosecution under the country’s money laundering and terrorist financing laws.

Between December 2021 and September 2023, Osunkoya managed 11 unregistered crypto ATMs across the UK, processing over £2.6 million (~$3.5 million) in transactions. Many of these transactions are believed to have been linked to money laundering and tax evasion, further implicating him in illegal activities. Despite being refused FCA registration in 2021, Osunkoya continued expanding his operations, earning profits with transaction fees as high as 60%.

Authorities revealed that Osunkoya attempted to evade regulations by using a false identity and forging documents. He also possessed £19,540 (~$26,000) in suspected illicit cash. If sentenced to the maximum penalties for all charges, Osunkoya could face up to 26 years in prison.

The FCA, which oversees anti-money laundering compliance in the UK’s crypto sector, ordered the shutdown of all unregistered crypto ATMs in March 2022. Currently, no legally registered crypto ATM operators exist in the country.

This case highlights the FCA’s continued crackdown on illegal crypto operations, warning users of the risks involved in dealing with unregulated platforms. Therese Chambers, joint executive director at the FCA, previously stated, "If you’re using a crypto ATM, you are handing your money directly to criminals."

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