A man who ran an illegal network of cryptocurrency ATMs was sentenced to four years in prison on Friday, in the first such criminal case in the UK.
Such ATMs, which allow users to buy cryptocurrency or convert it into cash, are illegal to operate in the UK without approval from Britain’s financial watchdog, the Financial Conduct Authority.
“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,” Therese Chambers, an executive director at the FCA, said in a statement.
Olumide Osunkoya operated these devices in 28 different locations between December 2021 and March 2022, enabling cryptocurrency transactions worth more than £2.5 million ($3.1 million), the financial watchdog said.
“It cannot be said that it is a mere regulatory breach,” said UK judge Gregory Perrins, who convicted the 46-year-old man at Southwark Crown Court.
He added that Osunkoya acted deliberately and unlawfully and went to “great lengths to create a false identity” to evade detection.
The FCA said he also failed to ensure the ATMs were not being used by criminals to launder the proceeds of crime.
The watchdog added that the number of crypto ATMs listed on the CoinATMRadar website in the UK fell to zero in 2024, down from more than 80 in 2022.
