A gavel rests on its sounding block with a several law books and a justice scale out of fucus in the background. A cool blue cast dominates the scene. (A gavel rests on its sounding block with a several law books and a justice scale out of fucus in t
iStock

The U.K.’s Financial Conduct Authority (FCA) has secured its first-ever conviction for offences related to the illegal operation of crypto ATMs.

The regulator reported that a man charged earlier this year in connection with running an unregistered network of crypto ATMs — Olumide Osunkoya — pled guilty to five charges on Monday at Westminster Magistrates’ Court. He will be sentenced for those convictions at a future court appearance that has yet to be scheduled.

“Osunkoya is due to be sentenced for running multiple crypto ATMs without FCA registration, creating and using false documents, and for possession of criminal property,” the FCA said in a release.

The case represents the FCA’s first criminal prosecution for engaging in unregistered crypto activity, and was the first case involving a network of illegal crypto ATMs.

“Osunkoya illegally operated a network of at least 11 crypto ATMs which processed more than £2.6 million in crypto transactions,” the FCA said, “He continued to operate and grow the crypto ATM network in local convenience shops across the U.K. despite being refused for registration with the FCA in 2021.”

The FCA noted that the crypto ATMs didn’t carry out any know-your-client due diligence, and that the court “heard evidence that those likely committing money laundering or tax evasion were using his machines.”

“The court also heard that Mr Osunkoya created a false alias to try and evade FCA rules,” the regulator said, adding that “Osunkoya is suspected to have made substantial profit from the operation receiving a margin on each transaction ranging between 10% and 60%.”