UK’s First Crypto ATM Conviction: FCA Secures 4-Year Sentence Against Unlicensed Operator

Last week, the UK’s Financial Conduct Authority (FCA) secured a four-year prison sentence for Olumide Osunkoya, following his guilty plea to illegally operating a cryptocurrency ATM network and additional charges of forgery, using false identity documents, and possessing criminal property.

According to former FCA Cryptocurrency Technical Specialist Ben Braik-Scivyer, now at TRM, ”The FCA has laid down a significant marker in disrupting illegal VASP operations in the United Kingdom. This, and their innovative collaboration with law enforcement in similar actions against illegal crypto ATMs in 2023 has made the UK cryptocurrency ecosystem safer.”

Osunkoya applied for an FCA license in 2020 to operate his business, GidiPlus Ltd, but the application was denied in 2021 due to concerns over compliance and a lack of evidence on how the business would meet regulatory requirements. A UK judge upheld the decision following an appeal.

Despite this, Osunkoya continued to operate a reduced ATM network, moving at least 11 ATMs from GidiPlus Ltd into convenience stores across the UK. Between December 2021 and September 2023, these ATMs processed over £2.6 million in cryptocurrency transactions. According to the FCA, these transactions were conducted without customer due diligence or source-of-funds checks.

FCA Investigation and Disruption of Unregistered Crypto ATMs

The FCA, in coordination with UK police forces, visited 38 locations and disrupted 30 cryptocurrency ATMs in 2023. Osunkoya was found to have operated under a false identity while running his ATM network.

During sentencing, Judge Perrins stated:

“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.”

The FCA reported that Osunkoya charged transaction markups between 30% and 60% on his machines. Following his conviction, the FCA has requested confiscation proceedings under the Proceeds of Crime Act 2022 to recover financial benefits gained from these operations.

Therese Chambers, FCA Joint Executive Director of Enforcement and Market Oversight, stated:

“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.”

Crypto ATMs and Illicit Finance

According to TRM, in 2023, crypto ATMs processed an estimated $3.6 billion in total transaction volume, with over $250 million (7%) linked to illicit activity—double the illicit transaction rate of the broader crypto industry (just over 3%). This surge is largely driven by pig butchering scams, where fraudsters exploit ATMs to collect victim funds, accounting for more than half of illicit ATM activity. Other major illicit uses include drug trafficking, fraud, and ties to darknet markets and illicit exchanges.

Despite regulatory efforts, crypto ATMs remain attractive for illicit finance due to pseudo-anonymity and cash accessibility. The U.S., which hosts over 80% of the world’s crypto ATMs, is the primary hotspot, with some operators failing to enforce proper KYC/AML measures or structuring transactions to evade reporting thresholds. As illicit ATM activity rises, regulators and enforcement agencies are tightening oversight to close compliance gaps and combat financial crime.

Conclusion

The sentencing of Olumide Osunkoya represents a significant enforcement action in the UK’s regulation of cryptocurrency ATMs. His conviction follows an FCA investigation into unregistered crypto ATMs, which identified compliance failures and regulatory evasion. The case underscores ongoing efforts to disrupt illicit financial activities linked to unregulated crypto infrastructure.

With crypto ATMs exhibiting higher rates of illicit activity than the broader crypto industry, regulatory agencies across multiple jurisdictions are expanding enforcement actions against unregistered operators. The FCA has also initiated confiscation proceedings under the Proceeds of Crime Act 2022 to recover illicit profits.

This case reflects the increasing scrutiny on cryptocurrency businesses operating outside regulatory frameworks, with authorities prioritizing AML compliance, customer due diligence, and financial crime prevention.