The United Kingdom has first sentenced someone criminally for unregistered bitcoin activities in a historic case. Somebody found guilty of unlawfully running a network of crypto ATMs has been sentenced to four years in prison, therefore indicating a crackdown on illegal financial activities.
Between December 2021 and March 2022, Olumide Osunkoya, the convicted person, oversaw a sequence of bitcoin ATMs at 28 sites. These devices enabled transactions valued at more than £2.6 million ($3.14 million) without the required Financial Conduct Authority (FCA) regulatory permission.
Authorities said Osunkoya tried to evade detection by passing control of the ATMs from his company, GidiPlus Ltd, to his personal ownership. Under a phony name and a phony firm name, he ran up to 12 machines to hide from investigation. He also forgot to put policies in place to stop money laundering using these channels.
His legal problems went beyond only unregistered business activities. Osunkoya also admitted guilt for forgery after creating four bank statements to pass a wealth verification check at a bitcoin exchange. In addition, he established a firm under a bogus name and had £19,540 ($24,567) in illegal money in hand.
Judge Gregory Perrins denounced Osunkoya’s acts during sentencing at Southwark Crown Court, stressing that they were deliberate and calculated legal offenses rather than just regulatory transgressions. The FCA strengthened this position, cautioning that high-risk, mostly unregulated crypto-related transactions in the UK still go unpacked under control.
The execution of a protracted FCA and local law enforcement operation to destroy illicit crypto ATMs led to Osunkoya’s conviction. Thirty illegal machines were taken out of thirty-eight sites that were investigated as part of these initiatives. From 80 in 2022 to none as of right now, the number of publicly traded cryptocurrency ATMs registered in the UK has dropped.
This case emphasizes the UK’s will to enforce financial compliance and fight illegal bitcoin activities; acting outside of legal bounds should be strongly warned against.
