UK crypto ATM operator pleads guilty to fraud, money laundering charges

Ana Paula Pereira7 hours agoUK crypto ATM operator pleads guilty to fraud, money laundering chargesOlumide Osunkoy faces prosecution on multiple charges related to the operation of crypto ATMs across the UK. He could spend up to 26 years in jail if convicted of all charges. 1048 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe owner of a crypto ATM in the United Kingdom pleaded guilty to multiple charges related to its business operation, including fraud and money laundering charges. 

According to a Sept. 30 announcement, Olumide Osunkoya operated at least 11 crypto ATMs across the UK without the required Financial Conduct Authority (FCA) registration, leading to the first prosecution in the country under the money laundering, terrorist financing and transfer of funds regulations. 

Between December 2021 and September 2023, the ATMs installed in local convenience stores processed more than £2.6 million (~$3.5 million) in crypto transactions. Evidence presented in court suggested that many of the ATM users were likely involved in money laundering or tax evasion. According to the claims:“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.”

Osunkoya allegedly made substantial profits from the operation, with a margin on transaction fees that ranged between 10% and 60%.

According to the FCA, He also attempted to evade regulations by creating a false alias and forging documents to conceal illegal activities. Further charges were brought against him for possessing £19,540 (~$26,000) in cash, suspected to be proceeds from his crypto ATM network.

Related:Global Bitcoin ATM network lost over 600 machines in 2 months

If sentenced to the maximum penalties for all charges, Osunkoya’s total possible jail time could reach 26 years. The sentencing will occur at a later date.

Charges against a second individual, Sally Lavington Osunkoya, were dropped following the guilty plea.

Since January 2020, the FCA has been the UK’s Anti-Money Laundering and Counter-Terrorist Financing supervisor for crypto asset businesses. Despite the growing popularity of digital assets in the country, the FCA ordered the closure of all unregistered crypto ATMs in March 2022. Currently, there are no legally registered crypto ATM operators in the UK.

In a prior statement, FCA joint executive director Therese Chambers warned crypto users in the country: “If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.”

Magazine:How Chinese traders and miners get around China’s crypto ban# ATM# Business# United Kingdom# RegulationAdd reaction