The First Charges Brought For Operating An Illegal Crypto ATM Network

Contributor

Rahman Ravelli is known for its sophisticated, bespoke and robust representation of corporates, senior business executives and professionals in national and international matters.
It is one of the fastest-growing and most highly-regarded, market-leading legal practices in its field. This is due to its achievements in criminal and regulatory investigations and large-scale commercial disputes involving corporate wrongdoing and multi-jurisdictional enforcement, and its asset recovery, internal investigations and compliance expertise.
The firm’s global reach, experienced litigators and network of trusted partner firms ensure it can address legal matters for clients anywhere in the world. It combines astute business intelligence and shrewd legal expertise with proactive, creative strategies to secure the best possible outcome for all its clients.
Rahman Ravelli’s achievements in certain cases have even helped shape the law. It is regularly engaged by other law firms to provide independent advice.

Explore Firm Details

The FCA has brought its first criminal prosecution against Olumide Osunkoya for running unregistered cryptocurrency ATMs, processing £2.6 million. This case highlights the strict regulatory environment and enforcement actions against non-compliant crypto ATM operators in the UK.

United Kingdom Criminal Law

Syed Rahman of Rahman Ravelli considers the issues involved in the FCA's action.

The Financial Conduct Authority (FCA) has brought its first criminal prosecution of an individual suspected of running a network of illegal cryptocurrency ATMs.

The regulator has charged London-based Olumide Osunkoya, 45, with unlawfully running cryptocurrency ATMs that processed £2.6 million in transactions at multiple locations between December 2021 and September 2023 without the required registration.

Osunkoya, who first acted as a director of a comany called Gidiplus Ltd before becoming sole practitioner, is charged with two offences under the money laundering regulations. He is also charged with two offences in connection with false documents created and used in operating the ATMs and one of possessing criminal property linked to the suspected proceeds of that business. He will appear before Westminster Magistrates' Court on September 30.

Gidiplus' application to be registered as a crypto exchange provider was refused by the FCA in November 2021. The company's appeal against the decision was unsuccessful.

The FCA said there are no legal operators of cryptocurrency ATMs in the UK and has warned that anyone using one is giving criminals their money. Last month saw the first person to be charged with running a single cryptocurrency ATM without permission from the FCA.

As there are currently no cryptocurrency ATMs registered with the FCA, these cases can be viewed as the regulator going for "low-hanging fruit'' prosecutions. But there is the question of whether the FCA gains an adequate return on its investment in pursuing such easy targets.

These cases, however, emphasise the legal obligations facing those operating cryptocurrency ATMs. Given how strict the FCA's registration regulations are, they give the regulator plenty of scope for bringing enforcement action against those who fail to meet them.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.