First UK Illegal Crypto ATM Network Case

First UK Illegal Crypto ATM Network Case


Good day everyone,

I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the first conviction in the United Kingdom for illegal crypto ATM's.

 

 

UK Crypto ATM Case

A resident of the United Kingdom known as Olumide Osunkoya has pleaded guilty to managing unregistered crypto ATMs in the UK. The news was released by the UK Financial Conduct Authority (FCA) in a press release on Monday the 30th of September, 2024. Osunkoya pleaded guilty to managing the network of unregistered crypto ATMs throughout the United Kingdom, with transactions totalling £2.6 million ($3.2 million) between December 2021 and September 2023.

After the plea was entered the press release noted that Osunkoya operated the unregistered machines despite being denied approval in 2021. He was denied for failing to conduct necessary due diligence on customers of the ATMs. Osunkoya’s network of crypto ATM's contained at least 11 machines and they operated throughout multiple locations in UK convenience stores. This allowed users to buy and sell digital assets without regulatory oversight.

It is a landmark case as Osunkoya became the first conviction of its kind in the country. The 45-year-old London resident admitted to five offenses at Westminster Magistrates' Court, which included running the unregistered crypto ATMs, creating false documents, and possessing criminal property. Court evidence shows that Osunkoya failed to perform necessary customer due diligence, such as verifying the source of funds, leading to suspicions that the machines were used for money laundering and tax evasion.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA noted:

 

“Our message today is clear. If you're illegally operating a crypto ATM, we will stop you. If you're using a crypto ATM, you are handing your money directly to criminals.”

 

This comment first appeared a couple of weeks ago when the FCA initially reported they had charged a 45-year-old with operating an illegal cryptocurrency business. Osunkoya used a false alias to evade detection while operating his network of ATM's, and court evidence showed that he likely profited substantially from the illegal operation. Transaction margins ranged from 10% to 60%. He allegedly falsified documents and created a false alias to help cover up his activities and deceive regulators.

Osunkoya also claimed to have sold his  supply of ATMs to a non-existent individual, while he has also been charged with possessing criminal property, including £19,540 ($26,165) in cash, believed to be proceeds from his illegal crypto operations. Osunkoya faces potential sentences of up to 2 years in prison for operating unregistered crypto ATMs, up to 10 years for forgery offenses, and up to 14 years for possession of criminal property. Sentencing will take place at Southwark Crown Court on a date to be confirmed.

The case is the first criminal prosecution related to unregistered crypto asset activity under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. It is also the first time charges have been brought against an individual for operating a network of crypto ATMs in the UK as there are currently no legal crypto ATM operators within the country. The market watchdog collaborates with law enforcement to address the issue of illegal cryptocurrency ATMs in the UK and in 2023 it led to the inspection of 34 suspected locations and the shutdown of 26 unlawful crypto ATMs.

While they remain illegal in the United Kingdom, it is not the same everywhere. In the United States for example, there are over 31,000 installed crypto ATMs which operate legally despite concerns over potential money laundering risks.

 

 

Have a great day.

Peace. CryptoGod-1.

 

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cryptogod-1
cryptogod-1

Writer, designer, creator, and life enthusiast. I love to read and write and enjoy sharing my passion for crypto, sports, literature and everything and anything I can enjoy in life.


CryptoGod-1 : Crypto & Blockchain
CryptoGod-1 : Crypto & Blockchain

Enthusiast here looking to share my ideas, thoughts, analysis, and experience when it comes to all things crypto

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