Crypto ATM operator faces criminal charges for running unlicensed network
The United Kingdom’s Financial Conduct Authority (FCA) has launched criminal proceedings against Olumide Osunkoya, the head of Gidiplus Limited, for operating a network of cryptocurrency ATMs without proper authorization.
This marks the first time the FCA has charged an individual in the UK for managing an unlicensed crypto ATM network.
Osunkoya’s crypto ATM network processed around £2.6 million (approximately $3.4 million) in transactions between December 2021 and September 2023, according to the FCA.
The charges against him include two counts of breaching the UK’s Money Laundering Regulations (MLRs), which aim to prevent financial crimes like money laundering and terrorist financing.
Additionally, Osunkoya faces charges under the Forgery and Counterfeiting Act 1981 for creating and using fake documents and a separate charge under the Proceeds of Crime Act 2002 for possession of criminal property.
Therese Chambers, the FCA’s Joint Executive Director of Enforcement and Market Oversight, emphasized the agency’s tough stance on illegal crypto ATMs.
“If you’re illegally operating a crypto ATM, we will stop you,” she stated, warning users that they could be directly supporting criminal activities by using such machines.
Gidiplus Limited, under Osunkoya’s leadership, sought to become a registered crypto asset exchange provider in November 2021 to legitimize its operations. However, the FCA denied the application, and a subsequent appeal was also unsuccessful.
Following this, in March 2022, the FCA ordered the shutdown of all unregistered crypto ATMs across the UK, making it illegal to operate any such machines without proper authorization.
Since then, the UK has had no legally operated crypto ATMs. The FCA has been active in shutting down illegal ATMs, intensifying its crackdown over the past year to ensure compliance with financial regulations.
While Osunkoya is the first to face charges for running an unlicensed network of crypto ATMs, he is not the only individual under investigation.
In April 2023, another operator, Habibur Rahman, was arrested for operating a single illegal crypto ATM and is accused of laundering £300,000 ($392,000) in criminal funds. Rahman is currently out on bail and awaiting a court appearance in October.
