The first person convicted of criminal charges for unregistered crypto activity in the U.K. — operating an illegal network of crypto ATMs — has now been sentenced to four years in prison, the Financial Conduct Authority (FCA) said Friday.
The regulator reported that Olumide Osunkoya — who previously pled guilty to five charges in connection with a network of crypto ATMs that he operated between the end of 2021 and March 2022, despite being refused registration by the FCA — has now been sentenced to four years in prison in Southwark Crown Court.
“This is the U.K.’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,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA, in a release.
Last October, Osunkoya admitted to two charges of operating without FCA approval, and pled guilty to counts of forgery, using false identity documents and possession of the proceeds of crime.
According to the regulator, in sentencing Osunkoya, Judge Gregory Perrins said, “Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator. … It cannot be said that it is a mere regulatory breach.”
At the hearing, the FCA also requested that the court initiate confiscation proceedings, in an effort to recover any financial benefits that Osunkoya obtained by violating the law, saying it’s believed that he “made substantial profit from the operation, charging a typical markup on each transaction of between 30% and 60%.”
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