Crypto crook Olumide Osunkoya faces a prison sentence after pleading guilty to illegally operating a network of illegal crypto ATMs.

He pleaded guilty to five offences at today’s hearing at Westminster Magistrates’ Court.

It is the first UK conviction of its kind for offences relating to the operation of crypto ATMs.  

Crypto ATMs are machines that allow people to buy or convert money into crypto assets at a cash machine. There are no legal crypto ATM operators in the UK.

Mr Osunkoya, 45, is due to be sentenced for running multiple crypto ATMs without FCA registration, creating and using false documents, and for possession of criminal property. 

Mr Osunkoya illegally operated a network of at least 11 crypto ATMs which processed more than £2.6m in crypto transactions between 29 December 2021 and 8 September 2023.  

He continued to operate and grow the crypto ATM network in local convenience shops across the UK despite being refused for registration with the FCA in 2021.  

Mr Osunkoya completed no customer due diligence or source of funds checks on those who used the crypto ATMs. The court heard evidence that those likely committing money laundering or tax evasion were using his machines.

Mr Osunkoya is suspected to have made substantial profit from the operation, receiving a margin on each transaction ranging between 10% and 60%.

The court also heard that Mr Osunkoya created a false alias to try and evade FCA rules. Mr Osunkoya falsely told the FCA that he had sold the crypto ATM network to an individual which the evidence showed did not exist. 

The charges mark the FCA's first criminal prosecution relating to unregistered cryptoasset activity under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

Mr Osunkoya first acted as a director of a company, Gidiplus Ltd, and later as a sole practitioner.

He is being charged with two offences under Regulations 86 and 92 of the MLRs for operating crypto ATMs without FCA registration. The maximum sentences for this are up to two years in prison, or a fine, or both.

Mr Osunkoya is also charged with two offences under the Forgery and Counterfeiting Act 1981 relating to false documents created and used during the above activity. Plus, an offence of possession of criminal property, £19,540 in cash, under the Proceeds of Crime Act 2002 relating to the suspected proceeds of his crypto ATM business. 

The maximum sentence for the offences of forgery and using a false instrument is up to 10 years in prison, or a fine, or both. The maximum sentence for an offence of possession of criminal property is up to 14 years in prison, or a fine, or both.  

Sentencing for the offences will take place at Southwark Crown Court at a date to be confirmed.