Olumide Osunkoya, a 46-year-old London resident, has become the first individual in the United Kingdom to be criminally convicted for operating unregistered cryptocurrency Automated Teller Machines (ATMs).
Osunkoya was sentenced to four years in prison after pleading guilty to five charges, including operating crypto ATMs without Financial Conduct Authority (FCA) registration, forgery, using false identity documents, and possession of criminal property. Between December 2021 and March 2022, he operated at least 11 unregistered crypto ATMs across multiple locations in the UK, facilitating transactions exceeding £2.5 million.
The sentencing took place on February 28, 2025, at Southwark Crown Court in London.
Despite the FCA rejecting his application for registration in 2021, Osunkoya continued his operations under a fictitious identity, “Yarik Wolnik,” to evade detection. He charged commissions ranging from 20% to 30% per transaction, amassing significant profits.
Crypto ATMs enable users to buy or convert money into cryptocurrencies like Bitcoin, functioning similarly to traditional bank ATMs. However, due to their potential misuse for money laundering and other illicit activities, operating such machines in the UK requires FCA registration. Currently, no crypto ATM operators are legally registered in the country.
Authorities worldwide are intensifying scrutiny over crypto ATMs. The FCA, in collaboration with law enforcement agencies, has been actively shutting down unregistered machines. In 2023 alone, the FCA visited 38 locations and disrupted 30 machines. The number of crypto ATMs advertised in the UK has declined from over 80 in 2022 to none in 2024.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, emphasized the significance of this case, stating, “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.”
Judge Gregory Perrins, who presided over the case, highlighted the severity of Osunkoya’s actions, noting that his offenses required “a significant degree of sophistication and planning,” and that he had made “a high degree … .”
This landmark sentencing underscores the UK’s commitment to regulating cryptocurrency activities and serves as a deterrent to those considering operating unregistered crypto services.
