Bitcoin ATM Operator Sentenced to Four Years in Prison for Cryptocurrency Crimes

Bitcoin ATM Operator Sentenced to Four Years in Prison for Cryptocurrency Crimes

In a significant legal development, Olumide Osunkoya has become the first individual in the UK to be sentenced for operating unregistered crypto ATMs. His actions have raised serious concerns about compliance in the cryptocurrency market, prompting regulatory scrutiny from the FCA.

The Rise and Fall of Osunkoya’s Crypto ATM Operations

Between 30 December 2021 and 12 March 2022, Osunkoya’s company, GidiPlus Ltd, managed crypto ATMs across 28 locations despite facing refusal for registration with the Financial Conduct Authority (FCA). Following this, he attempted to evade detection by personally operating a smaller network of up to 12 crypto ATMs under an assumed identity.

Criminal Charges and Sentencing

Osunkoya’s illegal activities did not stop at operating unregistered ATMs. He faced multiple charges, including:

  • Forging documents
  • Using false identity papers
  • Possessing criminal property

His operations were lucrative; he reportedly earned substantial profits by imposing a markup of 30% to 60% on each transaction. Judge Perrins, during the sentencing, remarked on the calculated nature of Osunkoya’s actions, highlighting, “Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator.”

Impact of FCA’s Crackdown on Crypto ATMs

The FCA’s crackdown has had a significant effect on the cryptocurrency landscape in the UK. The number of crypto ATMs listed on CoinATMRadar has plummeted from over 80 in 2022 to zero by 2024.

Regulatory Implications

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, stated, “This is the UK’s first criminal sentencing for unregistered crypto activity and sends a clear message: those who flout our rules will face serious consequences.” This landmark case underscores the importance of compliance in the rapidly evolving cryptocurrency market.

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As the regulatory landscape continues to evolve, it is crucial for businesses and individuals involved in cryptocurrency to stay informed and operate within the legal framework to avoid severe penalties.

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