The FCA brought criminal charges against an individual who operated a network of illegal crypto ATMs, making it the first time the agency has imposed money laundering laws on unregistered crypto activity.
Olumide Osunkoya, a 45-year-old Londoner, was busted for operating an illegal crypto automated teller machine (ATM) network in the UK by its financial regulator, the Financial Conduct Authority (FCA). Its criminal charges against Osunkoya make him the first person in the UK to face money laundering charges for operating an illegal crypto activity.
The FCA Denied Osunkoya’s Application—He Still Operated the ATM Network
Osunkoya had previously applied with the FCA to receive permission to operate as a crypto asset exchange provider in 2021 through his company, Gidiplus Limited. The agency turned his request down. Nonetheless, that did not stop him from running numerous ATMs from December 29, 2021, to September 8, 2023, during which the network processed 2.6 million pounds.
In a release issued on September 10, the FCA mentioned, “The charges mark the FCA’s first criminal prosecution relating to unregistered crypto asset activity under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).” Therese Chambers, joint executive director of enforcement and market oversight at the FCA, added, “If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.” Osunkoya also faces other charges for forging government documents to set up his enterprise. Specifically, he has been hit with two offenses under the Forgery and Counterfeiting Act 1981.
Osunkoya will appear in court on September 30. The FCA ordered the closure of unregistered crypto ATMs in March 2022 and began taking action against illegal ATMs in February 2023. While Osunkoya is the first to face money laundering charges for operating a network of crypto ATMs, the FCA previously brought criminal charges against Habibur Rahman, who operated a single crypto ATM.
