By PAUL O’DONOGHUE, Senior Correspondent
A UK court has sentenced Olumide Osunkoya to four years in prison for operating an unregistered crypto ATM network.
Judge Gregory Perrins called the offence “extremely serious” at Southwark Crown Court on Friday.
The Financial Conduct Authority (FCA) charged Osunkoya with running multiple illegal crypto ATMs, falsifying documents, and possessing criminal property between December 2021 and September 2023. He pleaded guilty in September 2024.
UK crypto ATM network and money laundering risks
Crypto ATMs, or CATMs, allow users to buy or convert cash into cryptocurrency, such as bitcoin. Authorities worldwide have cracked down on them due to money laundering risks. The machines provide little traceability, making it difficult to track funds.
Perrins said that when misused, crypto ATMs “are little more than money laundering machines.” Osunkoya operated at least 11 unregistered machines, processing over £2.5 million in transactions. He earned up to 30% in commission, making at least £500,000 in profit.
FCA Warnings
In 2021, Osunkoya applied for a licence to operate CATMs but was denied. The FCA warned him that running the machines without approval was illegal. He ignored the warning and created a fake identity, “Yarik Wolnik,” to continue operations.
Police arrested Osunkoya in September 2023 and found £19,500 in his home. He claimed the money was for household expenses. Perrins said his actions were “deliberate, carefully planned and extremely serious.”
Osunkoya’s lawyer, Lady-Gené Waszkewitz, argued that he suffered from severe sickle cell disease and would struggle in prison. She also said he supported his mother in Nigeria and his two-year-old daughter in London.
Osunkoya claimed he needed the money for his sister’s cancer treatment, but the court found no evidence. The FCA has requested legal proceedings to recover his illegal earnings.
Therese Chambers, FCA joint executive director of enforcement, said the sentencing “sends a clear message: those who flout our rules, seek to evade detection and engage in criminal activity will face serious consequences.”
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