Illegal Crypto ATM Operator Jailed for Four Years
March 20, 2025
The Financial Conduct Authority (FCA) confirmed that Olumide Osunkoya has been sentenced to four years in prison for operating an illegal crypto ATM network.
This case marks the UK’s first criminal sentencing for unregistered cryptoasset activity, sending a clear message about the consequences of breaching financial regulations.
What Happened?
Between 30 December 2021 and 12 March 2022, Mr Osunkoya operated crypto ATMs at 28 different locations across the UK through his company, GidiPlus Ltd. Crypto ATMs are machines that allow users to convert money into cryptoassets and/or cryptoassets into money.
He continued to operate the network illegally, even after the FCA refused him registration in December 2021.
After transferring ownership of the machines from GidiPlus Ltd, Mr Osunkoya personally ran a reduced network of up to 12 crypto ATMs under a false name and company to avoid detection. During this time, he failed to carry out anti-money laundering checks, which could have increased the risk of the machines being used to launder criminal proceeds.
The Convictions
On 30 September 2024, Mr Osunkoya pleaded guilty to five charges, including:
- Operating an unregistered network of crypto ATMs as both a director of GidiPlus Ltd and later as a sole trader.
- Forgery, having created four false bank statements in an attempt to pass source of wealth checks with a cryptoasset exchange.
- Using false identity documents to incorporate a company under an alias.
- Possessing criminal property, specifically £19,540 in cash, obtained through running the illegal crypto ATM network.
Mr Osunkoya’s operation is understood to have processed over £2.5 million, with a typical markup of between 30% and 60% on each transaction.
FCA Enforcement Action
At the sentencing on 28 February 2025, which took place at Southwark Crown Court, the FCA requested that the court initiate confiscation proceedings under the Proceeds of Crime Act 2002. These proceedings aim to recover any financial benefit Mr Osunkoya gained through his illegal activities.
This conviction follows the FCA’s wider crackdown on illegal crypto ATMs:
- In 2023, the FCA visited 38 locations and disrupted 30 crypto ATMs.
- The number of UK-based crypto ATMs listed on CoinATMRadar fell from over 80 in 2022 to zero in 2024.
FCA and Court Statements
His Honour Judge Perrins, in sentencing, 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.”
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, added:
“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.”
What Does This Mean for Crypto Users?
The FCA continues to warn consumers about the risks of cryptoasset investments:
- Crypto is largely unregulated in the UK.
- Consumers must prepare themselves to lose all their money if they choose to invest in cryptoassets.
Crypto ATMs, which allow users to convert money into cryptoassets (and vice versa), must be registered with the FCA and comply with anti-money laundering regulations.
Anyone considering cryptocurrency investments should:
- Check the FCA Register to confirm a firm’s authorisation.
- Be cautious of unsolicited offers promising guaranteed returns.
- Avoid unregulated crypto ATMs, as they often play a role in illegal activity.
A Growing Risk: Crypto Scams in the UK
Cryptocurrency scams are on the rise. Fraudsters are increasingly using digital currencies to exploit people looking for investment opportunities. These scams can take many forms, including fake investment platforms, phishing scams, and the use of unlicensed crypto ATMs—like those involved in this case.
According to Action Fraud, victims of crypto-related scams in the UK lost over £300 million in 2023 alone. Scammers often promise high returns, apply pressure tactics, and use complex jargon to confuse victims. Once money is transferred into crypto assets, it’s incredibly difficult to recover.
If you believe you’ve been scammed or have concerns about a crypto-related investment, it’s important to act quickly. Contact your bank or payment provider and ask about a refund. Recovering funds can be difficult.
About Compensation Adviser
If you are having difficulty recovering funds from crypto scams and would like to use our service, here’s some important information…
Compensation Adviser is a claims management company (CMC) authorised by the FCA for claims management activities.
Before deciding to use our services, please note that you can also pursue your claim for free by approaching your bank directly or through the Financial Ombudsman Service if you are unhappy with your bank’s response.
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