The rapid growth of cryptocurrency has reshaped the global financial landscape, offering new opportunities for investors, businesses, and technology enthusiasts. However, alongside legitimate innovation, there have been increasing cases of misuse, regulatory evasion, and fraud. One such case that recently shook the United Kingdom involves Olumide Osunkoya, a London businessman who became the first individual in the country to receive a criminal sentence for operating unregistered cryptocurrency ATMs. His story represents both a cautionary tale of overstepping the boundaries of financial law and a landmark moment in the regulatory evolution of digital assets.
Who is Olumide Osunkoya?
Olumide Osunkoya was born on 7 February 1979. Based in London, he presented himself as an entrepreneur operating within the cryptocurrency industry. Like many others drawn to the promise of decentralised finance, he sought to build a profitable venture by making crypto more accessible to everyday people. His company, GidiPlus Ltd, became the vehicle through which he launched a network of crypto ATMs in the UK.
These ATMs allowed users to exchange cash for cryptocurrencies such as Bitcoin, Ethereum, and others. On the surface, this seemed like a business offering convenience and innovation. But behind the scenes, serious compliance issues and deliberate misconduct would eventually lead to his arrest and conviction.
The Rise of Crypto ATMs in the UK
Crypto ATMs first appeared in the UK as early as 2014, offering a simple way for individuals to buy or sell digital assets without navigating online exchanges. They became popular among certain communities because they required less technical knowledge, provided instant transactions, and gave users a tangible way to interact with cryptocurrencies.
However, these machines also raised concerns. Unlike banks or regulated exchanges, crypto ATMs could potentially facilitate money laundering, tax evasion, or the movement of illicit funds. Regulators like the UK’s Financial Conduct Authority (FCA) stepped in to impose strict rules. Any operator of such machines needed proper registration under the Money Laundering Regulations (MLRs). Without this approval, running a crypto ATM business was unlawful.
Osunkoya’s Application and Denial
In 2020, Olumide Osunkoya submitted an application to the FCA for permission to operate legally. The application process required him to demonstrate that his company had strong anti-money laundering controls, adequate financial transparency, and sound management practices. Unfortunately for him, the FCA reviewed his application and raised serious concerns.
By 2021, his application was officially denied. The FCA cited weaknesses in his company’s anti-money laundering systems and doubts about his financial integrity. At this point, the legitimate path forward was clear: cease operations or overhaul his systems and reapply. Instead, Osunkoya chose a different route—one that would eventually lead to criminal prosecution.
The Illegal Operations
Despite his rejection, Osunkoya pressed ahead with his business. Between December 2021 and March 2022, he operated a network of crypto ATMs across several locations in the UK. His company, GidiPlus Ltd, was at the centre of this activity. Reports estimate that during this short period, his machines processed between £2.5 million and £2.6 million in cryptocurrency transactions.
When the FCA intensified its enforcement activity and disrupted some of his machines, he attempted to outmanoeuvre the regulators. He transferred ATMs into other names, adopted a false identity, and continued operating under a different business facade. These deliberate acts of deception showed not only persistence but also intent to evade lawful oversight.
Forgery and False Documents
Osunkoya’s activities were not limited to unregistered ATMs. He also engaged in fraud. To maintain his appearance of legitimacy, he fabricated four bank statements and used forged documents to pass financial checks. He created false identity records and misrepresented his operations to partners and authorities. Such behaviour went beyond regulatory breach and firmly into criminal territory, reinforcing the seriousness of his misconduct.
The Charges
By September 2024, after extensive investigations, Olumide Osunkoya pleaded guilty to five separate offences. These included:
Operating cryptocurrency ATMs without FCA registration, both as director of GidiPlus Ltd and as a sole trader.
Forgery, relating to falsified financial records.
Using false instruments, including fake identity documents.
Possession of criminal property, specifically £19,540 in cash linked to illicit operations.
The breadth of these charges illustrates the scale of wrongdoing. This was not a case of misunderstanding regulations; it was an intentional effort to bypass the law for personal gain.
The Sentencing
On 28 February 2025, at Southwark Crown Court, Judge Perrins sentenced Osunkoya to four years in prison. The ruling was historic: it was the first criminal sentencing in the UK for unregistered crypto asset activity under the Money Laundering Regulations.
The judge described his actions as deliberate, carefully planned, and far beyond a mere technical breach. The custodial sentence reflected the court’s recognition of the risks posed by illegal crypto operations to the integrity of the financial system. It also served as a warning to others who might consider skirting regulations in pursuit of profit.
The FCA’s Response
The FCA celebrated the conviction as a landmark success in its campaign against illegal crypto activities. Beyond sentencing, the authority also launched confiscation proceedings under the Proceeds of Crime Act 2002 to recover the financial gains made through Osunkoya’s unlawful business. This dual approach—criminal punishment and financial recovery—aims to both deter future misconduct and remove incentives for similar schemes.
The FCA had already been ramping up enforcement in this area. By 2023, it disrupted 30 illegal crypto ATMs across 38 inspections. Within two years, the number of crypto ATMs listed in the UK fell from over 80 to none. The Osunkoya case thus represents both an individual punishment and a broader policy success.
Lessons for the Crypto Industry
The conviction of Olumide Osunkoya carries several lessons for the cryptocurrency industry and for entrepreneurs considering entering this space.
1. Regulation is Non-Negotiable
The digital asset sector has often been portrayed as a frontier with minimal oversight. However, as this case demonstrates, regulators are increasingly assertive. Anyone wishing to operate within the UK must align with FCA requirements. Attempting to bypass these standards risks not only business failure but also imprisonment.
2. Compliance Builds Trust
Users of crypto services deserve to know that their transactions are secure, legal, and protected from criminal misuse. Compliance with anti-money laundering frameworks is not just about obeying the law—it is about building trust with customers and with the wider financial ecosystem. By failing in this regard, Osunkoya undermined his own business prospects.
3. Enforcement is Escalating
The sentencing indicates that the era of warnings and fines is giving way to harsher punishments. With regulators equipped to pursue criminal convictions, future offenders may face prison rather than simply financial penalties.
4. Innovation Must Balance with Responsibility
Cryptocurrency is still young and evolving. Entrepreneurs have opportunities to innovate and provide valuable services. However, innovation cannot come at the expense of responsibility. Proper systems, transparency, and integrity are essential for long-term success.
Wider Implications for UK Finance
The Osunkoya case also highlights the UK’s determination to position itself as a safe and reputable hub for digital finance. By eliminating unregistered operators, the government and regulators send a message to investors worldwide: Britain is open to crypto innovation, but only on lawful terms. This helps attract serious businesses while deterring those who would use the technology for criminal ends.
Furthermore, the case illustrates the growing convergence between traditional financial law and emerging technologies. The Proceeds of Crime Act, originally designed to address conventional criminal gains, is now being applied to recover unlawful profits from digital asset schemes. This signals that regulators and courts are ready to adapt their tools to the changing landscape.
Public Perception and Media Coverage
Media outlets described the case as a landmark event. It has drawn attention not only within the financial sector but also among the general public. Many readers may never have used a crypto ATM, but they recognise the broader theme: attempts to circumvent the law will meet with serious consequences. For some, it reinforced existing scepticism about cryptocurrency. For others, it underscored the importance of regulation in separating legitimate businesses from exploitative schemes.
Conclusion
Olumide Osunkoya’s story is ultimately one of ambition gone astray. By pursuing profit through illegal means, he became the first person in the UK to face a criminal sentence for unregistered cryptocurrency operations. His four-year imprisonment stands as a milestone in the regulation of digital finance and a powerful warning to others who might seek to sidestep the law.
The case reveals the importance of compliance, the risks of fraudulent behaviour, and the determination of regulators to protect the integrity of the financial system. It also highlights the maturing nature of cryptocurrency as an industry. No longer can individuals treat it as a free-for-all; it is increasingly a space where only those who respect the rules can thrive.
