Landmark UK Ruling: Crypto ATM Operator Sentenced to Four Years in Prison
- techtalkies
- Mar 3
- 2 min read
In a groundbreaking UK legal case, Olumide Osunkoya has been sentenced to four years in prison for illegally operating cryptocurrency ATMs. The verdict, handed down by Southwark Crown Court, marks the first conviction of its kind in the country and reinforces the UK’s regulatory stance on unauthorized crypto activities.
Illegal Crypto Operations Worth Millions
Osunkoya, 46, was found guilty of operating unregistered crypto ATMs at 28 different locations through his company, GidiPlus Ltd. Between December 30, 2021, and March 12, 2022, these illegal kiosks processed over £2.5 million in cryptocurrency transactions, allowing users to buy and sell digital assets outside the regulated financial system.
Under UK law, cryptocurrency ATMs must be registered with the Financial Conduct Authority (FCA) to operate legally. Despite applying for approval, GidiPlus Ltd’s application was denied. However, Osunkoya continued his operations, even transferring several machines under a false identity to a personally controlled network of up to 12 ATMs.
Judge Condemns “Deliberate Defiance” of Regulations
During sentencing, Judge Perrins emphasized the calculated nature of the crime, stating:
"Your decision to continue operating illegally was an act of deliberate and calculated defiance against the regulator. You knew full well that you were acting unlawfully."
He further noted that Osunkoya went to great lengths to conceal his involvement, making it clear that this case was not a minor regulatory breach but a serious offense.
FCA Cracks Down on Illegal Crypto ATMs
The Financial Conduct Authority (FCA), in collaboration with law enforcement agencies, has been actively shutting down unauthorized crypto ATMs across the UK.
According to Therese Chambers, FCA’s joint executive director of enforcement and market oversight, this case sends a strong warning to those attempting to bypass regulations:
"This conviction sends a clear message to those who flout our rules, seek to evade detection, and engage in criminal activity."
In recent police raids, authorities have targeted 38 locations across cities like London and Leeds, aiming to eliminate unregistered crypto machines that pose a significant risk for money laundering and other illicit financial activities.
Crypto ATMs Disappear from the UK Market
Data from CoinATMRadar, a platform that tracks crypto ATM locations, indicates that the number of publicly listed crypto ATMs in the UK has dropped from over 80 in 2022 to zero by the end of last year. This reflects the strict enforcement measures taken against unregulated digital asset services.
Global Crackdown on Crypto ATMs
The UK joins countries like the United States, Canada, and Australia in enforcing strict registration requirements for cryptocurrency ATMs. Regulators worldwide are tightening controls to prevent crypto kiosks from being exploited for illicit financial activities, ensuring that digital transactions remain transparent and accountable.
Conclusion
Osunkoya’s sentencing represents a significant milestone in UK crypto regulation, reinforcing the government’s zero-tolerance policy towards unlicensed financial activities. As authorities continue to monitor and enforce compliance, the case serves as a stern warning to those seeking to operate outside the legal framework of digital finance.
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