TLDR
- Olumide Osunkoya received a 4-year prison sentence for illegally operating crypto ATMs without regulatory approval
- This marks the UK’s first criminal sentencing for unregistered cryptocurrency activity
- Osunkoya processed £2.6 million ($3.14 million) through 28 locations from December 2021 to March 2022
- He continued operations under a fake name after being detected
- The FCA has since conducted a crackdown, reducing advertised crypto ATMs in the UK from 80 to zero
The United Kingdom has handed down its first-ever criminal sentence for unregistered cryptocurrency activity. Olumide Osunkoya has been sentenced to four years in prison for illegally operating cryptocurrency ATMs without required regulatory permission.
The Financial Conduct Authority (FCA) announced the sentence on February 28. They stated that Osunkoya ran a network of crypto ATMs at 28 different locations through his company GidiPlus Ltd.
These machines operated without proper registration from December 2021 to March 2022. During this period, the ATMs processed approximately 2.6 million British pounds, equivalent to about $3.14 million.
The 46-year-old Osunkoya didn’t stop when authorities first detected his illegal operations. He transferred the ATMs from his company GidiPlus to personal control.
He then continued to operate up to 12 machines under a fake name and company. This was a clear attempt to avoid detection by regulators.
Regulatory Crackdown and Continued Evasion
The FCA charged Osunkoya on September 10. He faced charges related to running crypto ATMs without proper registration.
Olumide Osunkoya, who illegally operated crypto ATMs via his company, GidiPlus Ltd, has been sentenced to 4 years in prison for illegal crypto activity worth over £2.5m.
Read more https://t.co/2yf98h1Pj4#FinancialCrime #FinancialRegulation #Crypto pic.twitter.com/uSVVvn43vz
— Financial Conduct Authority (@TheFCA) February 28, 2025
Osunkoya pleaded guilty to five charges on September 30. This made him the first person in the UK to be charged for operating illegal crypto ATMs.
The sentence included additional charges beyond just the illegal ATM operations. Osunkoya was also sentenced for forgery.
He created four fake bank statements to pass a source of wealth check at a crypto exchange. The forged documents helped him continue his illegal activities.
He also used a fake identity to create a company under an alias. Another charge involved possessing criminal property – specifically 19,540 British pounds ($24,567) in cash obtained through his illegal ATM business.
Judge Gregory Perrins delivered the sentence at Southwark Crown Court in London. During sentencing, the judge emphasized the deliberate nature of Osunkoya’s actions.
“Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator,” Judge Perrins stated. He added, “Your actions were deliberate and carefully planned. It cannot be said that it is a mere regulatory breach.”
Osunkoya’s sentence follows a major FCA enforcement campaign in 2023. The regulator worked with local police agencies across the country to eliminate illegal crypto ATMs.
The FCA reported that it visited 38 locations during this operation. They successfully took down 30 machines as part of their enforcement efforts.
The impact of these enforcement actions has been dramatic. According to Coin ATM Radar website data, the number of advertised crypto ATMs in the UK fell from 80 in 2022 to zero this year.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, commented on the case. “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.”
The FCA continues to maintain a cautious stance on cryptocurrency investments. In their statement announcing the sentence, they included a warning to consumers.
“The FCA continues to warn people that if you buy crypto, you should be prepared to lose all your money,” the regulator stated. They added, “Crypto remains largely unregulated in the UK and is high risk.”
The case highlights the increasing regulatory focus on cryptocurrency operations in the United Kingdom. It demonstrates that authorities are willing to pursue criminal charges against those who operate outside the regulatory framework.
