A UK man was found guilty of running cryptocurrency automated teller machines illegally in the UK and received a four-year prison sentence.
The 46-year-old, who was identified as Olumide Osunkoya, was charged with operating cryptocurrency automated teller machines (ATMs) through his business, GidiPlus, which had machines strategically placed throughout the United Kingdom.
The sentencing comes at a time when UK has seen a rise in illegal crypto activities and has tried to take strict actions against them.
What Was The Modus Operandi Of The Crime?
Authorities claim that even though Osunkoya was rejected for registration by the Financial Conduct Authority, he nevertheless established a crypto ATM business worth £2.5 million ($3.2 million). He entered a guilty plea to six counts on September 30, 2024, after the FCA filed accusations against him in early September of that year.
Osunkoya ran his unregistered cryptocurrency firm from December 2021 to March 2022, according to court filings. According to the FCA, he charged markup fees ranging from 30% to 60% on transactions, generating substantial profits.
Crypto Scams See Significant Surge in UK
In the UK, cryptocurrency scams have become more prevalent, and more people are becoming victims of these fraudulent schemes. Millions of pounds were lost by UK citizens in 2024, frequently as a result of phishing scams, Ponzi schemes, and fraudulent investment proposals.
One such instance is “cryptocurrency investment fraud,” in which con artists pose as trustworthy financial advisors or cryptocurrency platforms in order to trick victims into investing in fictitious digital assets. Social media sites or phony celebrity endorsements can often be used to entice victims by giving frauds a more authentic appearance.
The increase of “rug pulls,” in which cryptocurrency developers exit projects after receiving substantial investment, leaving investors with worthless tokens, is another example.
The public has received multiple cautions from the UK’s Financial Conduct Authority (FCA) to exercise caution and stay away from high-risk investments. The likelihood of scams increases with the use of cryptocurrencies, thus regulation and education are essential to shielding customers from financial loss.
UK Takes Strict Actions To Curb Illicit Crypto Crimes
With an emphasis on tougher laws and more effective enforcement, the UK is stepping up its efforts to stop illicit cryptocurrency activity. The Financial Conduct Authority (FCA) has increased its alerts regarding illicit investment schemes and unregistered cryptocurrency businesses.
Stricter anti-money laundering (AML) and know-your-customer (KYC) regulations are being applied to cryptocurrency companies. To improve accountability and transparency, the FCA also implemented regulations in 2024 mandating that businesses register with them before providing cryptocurrency services.
The UK government is also actively drafting laws to strengthen crypto rules, including plans for harsher sanctions for misconduct and fraud. By lowering the likelihood of fraud and illicit activity in the quickly expanding crypto industry, these steps seek to protect consumers and advance a safer, more regulated crypto environment.
Also Read: UK Cracks Down on Russian Money Laundering Rings, Seizes $25.4M in Cash and Cryptocurrency