The operator of a crypto ATM network in the UK has been sentenced to four years in prison in the first such case brought the FCA.
Between 30 December 2021 and 12 March 2022, Olumide Osunkoya operated crypto ATMs at 28 different locations via his company, GidiPlus Ltd, despite being refused registration with the FCA.
Osunkoya later transferred the machines from GidiPlus Ltd and personally operated a reduced network of up to 12 crypto ATMs under a false name and company to evade detection.
Osunkoya was also convicted and sentenced for forgery, using false identity documents, and possessing criminal property.
Osunkoya is understood to have made substantial profit from the operation, charging a typical markup on each transaction of between 30% and 60%.
Osunkoya’s sentence is the first for unregistered cryptoasset activity in the UK.
As a result of the FCA crackdown, the number of crypto ATMs advertised on CoinATMRadar in the UK has fallen from more than 80 in 2022 to nil in 2024.
In sentencing, Judge Perrins told Osunkoya: "Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator... You knew full well that you were acting unlawfully... You went to great lengths to create a false identity to conceal your involvement... Your actions were deliberate and carefully planned... It cannot be said that it is a mere regulatory breach."
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, comments: "This is the UK’s first criminal sentencing for unregistered crypto activity and sends a clear message: those who flout our rules, seek to evade detection and engage in criminal activity will face serious consequences."