The operator of a network of illegal crypto ATMs has pleaded guilty in Westminster Magistrates Court in the first UK conviction of its kind.
Olumide Osunkoya is due to be sentenced for five counts of operating ATMs used for buying and selling cryptoassets without registration from the Financial Conduct Authority (FCA).
Under British law, ventures for buying and selling cryptoassets must be approved by the FCA. There are currently no crypto ATMs approved by the regulator.
Osunkoya illegally operated a network of at least 11 ATMs that processed more than £2.6m in transactions from December 2021 to September 2023.
Osunkoya was refused registration in 2021, however, continued operating the machines, located in convenience shops across Britain, illegally.
No customer due diligence checks were made and the court was informed that the machines were likely used for money laundering or tax evasion, resulting in what was said to be a substantial profit for Osunkoya, who attempted to evade FCA rules with a false alias.
Sentencing for the offences will take place at Southwark Crown Court. No date for the sentencing has been set.
The FCA has been cracking down on crypto ATMs in the last few years, working with various local police authorities on raids of suspected sites.
Raids have been conducted in London, Leeds, Exeter, Sheffield and Nottingham, with more than two dozen sites shut down.
“If you use a crypto ATM in the UK, you are using a machine that is operating illegally and you may be handing your money over to criminals,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA last year.