As a seasoned crypto investor with over two decades of experience in the financial markets, I’ve seen my fair share of shady characters and questionable practices. However, Osunkoya’s illegal ATM network takes the cake (or should I say Bitcoin?) as one of the most brazen attempts to skirt the law that I’ve come across.
Olumide Osunkoya admitted guilt for committing five crimes associated with operating an unauthorized cryptocurrency ATM network throughout the United Kingdom, marking this as the nation’s initial conviction of its kind in this field.
In a first for the UK, an individual named Osunkoya has been convicted for operating unlicensed cryptocurrency Automated Teller Machines (ATMs), with a reported transaction volume of approximately £2.6 million, as detailed in a statement from the Financial Conduct Authority.
At the Westminster Magistrates’ Court, Osunkoya confessed to running numerous cryptocurrency Automated Teller Machines (ATMs) without Financial Conduct Authority (FCA) authorization, utilizing fake documentation, and holding illicit funds.
Osunkoya’s illegal ATM network
Osunkoya oversaw a network of over a dozen cryptocurrency automated teller machines (ATMs), handling transactions worth more than 2.6 million pounds in crypto assets from December 2021 to September 2023. Despite being denied registration by the Financial Conduct Authority (FCA) in 2021, he persisted in operating these ATMs within various convenience stores across the country.
These automated machines that exchange cash for cryptocurrencies have been utilized without the usual customer identification procedures or verifications of the origin of funds. This practice has sparked worries about potential illegal activities such as money laundering and tax avoidance.
Since January 2020, the Financial Conduct Authority (FCA) has served as the anti-money laundering overseer for cryptocurrency businesses within the United Kingdom. As such, it is necessary for these operations to register in order to operate legally. At present, there are no registered crypto ATMs in the UK that comply with FCA’s stringent regulations.
According to the FCA, court evidence indicated that Osunkoya attempted to circumvent regulations by fabricating a false identity. It was alleged that he gained profit from transaction margins, which ranged from 10% to 60%. Moreover, authorities discovered approximately £19,540 in cash, believed to be the earnings from his illicit activities.
The charges against Osunkoya include operating crypto ATMs without FCA registration, creating false documents, and possessing criminal property. He faces potential prison sentences, fines, or both. His sentencing will take place at Southwark Crown Court on a date yet to be confirmed.
In a similar vein, last month saw German authorities taking custody of 13 cryptocurrency ATMs and freezing approximately $28 million in cash from 35 different locations across the country on August 20th. This action was spearheaded by BaFin, with the primary objective being to apprehend machines functioning without valid licenses, potentially creating money laundering vulnerabilities.
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2024-09-30 16:58