First UK Criminal Conviction for Unregistered Crypto ATMs Involves Over £2.5 Million

Case Overview and Judicial Statement

Between December 2021 and March 2022, Osunkoya managed a network of crypto ATMs through his company, GidiPlus Ltd, despite being denied registration by the Financial Conduct Authority (FCA). Operating such machines without regulatory approval is illegal in the UK. To avoid detection, he later transferred ownership of the ATMs from GidiPlus Ltd and continued operations under a different name, managing up to 12 machines personally.

During his operations, Osunkoya failed to implement essential anti-money laundering measures, allowing criminals to potentially use the ATMs for illicit financial activities. In addition to running the unauthorized crypto ATM network, he was convicted of forging bank statements, using false identity documents, and holding illicitly acquired funds.

At his sentencing, Judge Perrins emphasized the severity of his actions, stating that Osunkoya had deliberately defied regulations and gone to great lengths to conceal his identity. The judge noted that his actions were premeditated and well-orchestrated, describing the case as more than just a regulatory infraction but a calculated attempt to circumvent the law.

Osunkoyas Admission of Five Charges

GidiPlus Ltd initially sought registration under the UKs Money Laundering Regulations in 2020. However, the FCA rejected its application in December 2021, preventing the company from legally operating crypto ATMs. Despite this rejection, Osunkoya proceeded with his business, leading to multiple charges.

Osunkoya pleaded guilty to five offenses, including two counts of operating a crypto ATM network without FCA authorization—one as the director of GidiPlus Ltd and another as an independent operator. Additional charges included forging documents to pass financial checks, using fake identity documents to register a company under a false alias, and possessing £19,540 in illicitly obtained cash. Reports suggest that he profited significantly from his operations, applying transaction markups of 30% to 60%.

UKs Evolving Crypto Regulatory Landscape

The UKs approach to cryptocurrency regulation has been evolving to address the rapid growth of the digital asset market. The Financial Conduct Authority (FCA) has been at the forefront, implementing measures to ensure consumer protection and market integrity.

In February 2023, the UK Treasury released a consultation paper outlining proposed changes to crypto regulation, aiming to integrate cryptoassets into the existing financial services framework. The governments response in October 2023 highlighted key developments, including establishing a broad definition of cryptoassets, expanding the regulatory perimeter, and enhancing financial crime requirements. These steps are designed to foster innovation while mitigating risks associated with digital assets.

Furthermore, the FCA has announced plans to implement a comprehensive regulatory framework for cryptoassets by 2026, aligning with global efforts to regulate the sector. This framework will address capital requirements, insider trading, and execution standards, bringing the crypto industry more in line with traditional financial sectors. The FCA‘s proactive approach underscores the UK’s commitment to supporting a safe and innovative crypto market, ensuring that operators adhere to stringent standards to protect consumers and maintain market integrity.