FCA charges first individual with running a network of illegal crypto ATMs

The FCA has charged Mr Olumide Osunkoya, who is 45 and resides in London, for unlawfully running multiple crypto ATMs without FCA registration. Crypto ATMs are machines that allow you to buy or convert money into cryptoassets.

Mr Osunkoya is accused of running crypto ATMs, which processed £2.6m in crypto transactions across multiple locations between 29 December 2021 and 8 September 2023 without the required registration.

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.

The charges follow the FCA’s recent operation, working in partnership with law enforcement agencies, to tackle illegally operated crypto ATMs across the country.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA said:

‘Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you.

‘If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.’

There are no legal crypto ATM operators in the UK.

The defendant will appear before Westminster Magistrates’ Court on 30 September 2024.

The FCA continues to warn people that if you buy crypto, you should be prepared to lose all your money. Crypto remains largely unregulated in the UK and is high-risk.

Notes to editors
Mr Osunkoya’s date of birth is 7 February 1979.
The FCA has been the anti-money laundering and counter-terrorist financing (AML/CTF) supervisor of UK cryptoasset businesses since 10 January 2020.
Firms that want to provide cryptoasset services that come within the scope of the money laundering regulations must register with the FCA.
We register firms who meet our standards for anti-money laundering and terrorist financing controls. We have published information on those regulatory standards. We also provide firms with support during the registration process, including pre-application meetings.
Mr Osunkoya first acted as a director of a company, Gidiplus Ltd, and later as a sole practitioner. He is being charged with two offences under Regulations 86 and 92 of the MLRs for operating crypto ATMs without FCA registration. He is also charged with two offences under the Forgery and Counterfeiting Act 1981 relating to false documents created and used during the above activity, and an offence of possession of criminal property under the Proceeds of Crime Act 2002 relating to the suspected proceeds of his crypto ATM business.
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.
On 28 August 2024, Kent Police charged an individual for running a single crypto ATM without FCA permissionLink is external. This was the first charge of its kind brought against an individual in the UK.
In 2023, the FCA visited and inspected 34 locations across the UK suspected of hosting crypto ATMs. This resulted in the FCA disrupting 26 machines operating unlawfully across the country.
The FCA’s site inspections were done in collaboration with law enforcement agencies such as the South West Regional Organised Crime Unit, Bedfordshire Police, Hertfordshire Police, and the Metropolitan Police.
The FCA published a list of cryptoasset businesses that are operating without our authorisation.

Article Credit: https://www.fca.org.uk/news/press-releases/fca-charges-first-individual-running-network-illegal-crypto-atms