Olumide Osunkoya has been sentenced to four years in prison for an illegally operated cryptocurrency counter machine in the UK.
The 46-year-old faces charges related to running a Crypto ATM via his company Gidiplus, and machines are installed in multiple locations in the UK.
According to authorities, Osunkoya set up a Crypto ATM business of £2.5 million ($3.2 million) despite being denied registration by the financial conduct authorities. The FCA filed charges against him in early September 2024, and pleaded guilty to six counts on September 30, 2024.
On February 28, the court convicted him of unregistered cryptographic activity, forgery, possession and use of false identity documents and possession of criminal property.
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Court documents revealed that Osunkoya operates an unregistered crypto business between December 2021 and March 2022. The FCA said it charged markup fees between 30% and 60% on the transaction, resulting in significant profits.
“Your decision to continue to work illegally was a deliberate and calculated act of rebellion against the regulator,” his honorary judge Perrins said during the ruling.
The judge further stated that Osunkoya “has become a great deal of length to create a false identity,” making his claim more than merely a violation of regulations.
“This is the UK’s first criminal judgment for unregistered cryptographic activity and sends a clear message. Anyone who fles our rules, avoids detection, and tries to engage in criminal activities faces serious consequences.”
Osunkoya’s conviction comes as the FCA seeks to step up crackdowns on illegal crypto-related operations and services.
The Financial Market Watchdog requires all providers seeking to provide domestic digital asset services and products to register. The FCA also requires providers to adhere to anti-money laundering guidelines and checks. This is what the agency says is that the Crypto ATM provider didn’t follow.
Market regulators say the crackdown on illegal cryptographic counters saw the location of Coinatmradar’s UK crypto ATMs from 80 to 80 in 2022. Most of these machines are installed in the United States, with over 29,700 locations.
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