UK Sentences First Illegal Crypto ATM Operator to Four Years in Unprecedented Case

In a landmark ruling, the United Kingdom has sentenced an individual to four years in prison for operating an unregistered network of cryptocurrency ATMs—the first criminal conviction of its kind in the country.

Olumide Osunkoya was found guilty of running crypto ATMs without the necessary regulatory approval, the Financial Conduct Authority (FCA) confirmed in a statement on February 28. The watchdog charged Osunkoya on September 10, revealing that his company, GidiPlus Ltd, had processed approximately £2.6 million ($3.14 million) in transactions across 28 locations between December 2021 and March 2022.

According to the FCA, Osunkoya later attempted to evade detection by transferring control of the ATMs from GidiPlus and personally operating up to 12 machines under a fake name and company. He also failed to implement safeguards against money laundering, violating financial regulations.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, emphasized the significance of the case:

"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."

Beyond running illegal crypto ATMs, Osunkoya was also convicted of forgery. Authorities found that he had created four fraudulent bank statements to pass a source of wealth check at a crypto exchange. He additionally used a fake identity to establish a company and was caught in possession of £19,540 ($24,567) in cash derived from the illicit ATMs.

Judge Gregory Perrins, presiding over the case at Southwark Crown Court in London, criticized Osunkoya’s blatant disregard for the law.

"Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator," Judge Perrins stated. "Your actions were deliberate and carefully planned. It cannot be said that this is a mere regulatory breach."

Crackdown on Illegal Crypto ATMs

Osunkoya’s conviction follows a 2023 FCA-led crackdown on illegal crypto ATMs in partnership with local law enforcement. The regulator conducted inspections at 38 locations across the UK, resulting in the removal of 30 machines. According to FCA data, the number of crypto ATMs listed on Coin ATM Radar dropped from 80 in 2022 to zero in 2024.

The FCA reiterated its stance on cryptocurrency risks, warning consumers that digital assets remain largely unregulated in the UK.

"The FCA continues to warn people that if you buy crypto, you should be prepared to lose all your money," the statement concluded.