FCA charges man for operating crypto ATMs that handled $3.4m

The FCA has charged a London man for illegally operating multiple crypto ATMs without registration, processing millions in transactions.

The U.K.’s Financial Conduct Authority has charged a London man, Olumide Osunkoya, with unlawfully operating crypto ATMs without the necessary registration, marking the regulator’s first criminal prosecution involving unregistered crypto activity.

In a Sept. 10 press release, the financial watchdog accused Osunkoya of running multiple crypto ATMs across various locations that processed £2.6 million ($3.4 million) in transactions between December 2021 and September 2023.

The FCA says the case falls under the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017, making Osunkoya the first person to be charged for running a network of unregistered crypto ATMs in the U.K.

“Our message today is clear. If you are illegally operating a crypto ATM, we will stop you. If you are using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.”

Therese Chambers, the FCA’s joint executive director of enforcement and market oversight

No crypto ATMs legally operate in UK

Crypto ATMs allow users to buy or convert money into crypto, but their legal operation requires FCA oversight, which Osunkoya allegedly bypassed. The FCA has recently ramped up efforts, in partnership with law enforcement agencies, to crack down on illegally operated crypto ATMs, with this case being part of that wider initiative.

The FCA states that no crypto ATMs are legally operating in the U.K. and continues to caution consumers about the high risks of crypto, including the potential to lose all invested funds. Osunkoya is set to appear at Westminster Magistrates’ Court on Sept. 30.

Globally, the Bitcoin ATM market has seen significant growth. As of August, there were over 38,000 Bitcoin ATMs worldwide, up from just over 10,000 in October 2020, although this number is down from a peak of nearly 40,000 in December 2022.