The post UK Issues First Criminal Sentence For Running Illegal Crypto ATM Network appeared first on Coinpedia Fintech News
Olumide Osunkoya has been sentenced to four years in prison for illegally running a network of crypto ATMs in the UK without the required regulatory approval, according to the statement from Financial Conduct Authority (FCA) on February 28.
UK’s First Criminal Case for Unregistered Crypto Activity
Notably, this marks the UK’s first criminal case involving unregistered cryptocurrency activity.
“This is the UK’s first criminal sentencing for unregistered crypto activity and sends a clear message: those who flout our rules, seek to evade detection and engage in criminal activity will face serious consequences,” noted Therese Chambers, joint executive director of enforcement and market oversight at the FCA.
The FCA charged Osunkoya on September 10 for operating unregistered crypto ATMs at 28 different locations through his company, GidiPlus Ltd, from December 2021 to March 2022. During this time, the ATMs processed £2.6 million ($3.14 million).
Further, Mr Osunkoya later transferred the machines from GidiPlus Ltd and personally operated up to 12 crypto ATMs under a false name and company to evade detection.
Failed Anti-Money Laundering Checks
He also failed to carry out the necessary checks to ensure that the ATMs were not being used by criminals to launder the proceeds of crime. Besides, Mr Osunkoya was also convicted and sentenced for forgery, using false identity documents, and possessing criminal property.
‘Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator… Your actions were deliberate and carefully planned… It cannot be said that it is a mere regulatory breach,” remarked Judge Gregory Perrins in sentencing the 46-year-old Osunkoya at Southwark Crown Court in London.
FCA’s Crackdown To Shut Illegal Crypto ATMs
Osunkoya’s sentence follows a 2023 FCA crackdown with local police to shut down illegal crypto ATMs. The FCA visited 38 sites, removed 30 machines, and saw the number of crypto ATMs listed on Coin ATM Radar drop from 80 in 2022 to none this year.
The FCA continues to caution people that if they invest in crypto, they should be ready to lose all their money. Since crypto is still mostly unregulated in the UK, it carries a high level of risk, stated the regulator.
