London Resident Accused of Illegal Management of Crypto ATMs

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UK police have accused 37-year-old London resident Habibur Rahman of installing unregistered crypto ATMs and laundering $300,000 ($393,700) through cryptocurrencies.

Habibur Rahman was arrested in 2023 during a police raid on an electronics store in Chatham, Kent, where several crypto ATMs were seized. Rahman, the owner of the store, became the first person in the UK to be charged with illegally operating crypto ATMs.

Police also suspected Rahman of money laundering and digital asset fraud, but the man was released on bail. He is due to appear in court on October 10.

Crypto ATMs have been under the close control of the UK authorities since 2022. The UK's Financial Conduct Authority (FCA) has called on operators to register devices or remove them from public access, otherwise enforcement measures will be taken against their owners. As a result, the number of crypto ATMs installed in the UK has decreased significantly.

According to Coin ATM Radar, in March 2022, 81 crypto ATMs were operating in the UK. However, now there is no information on the platform about operating devices in the country, as the British authorities suppress the illegal use of crypto ATMs.

"There are no crypto ATMs registered with the FCA right now, so if you use these devices, you may be unknowingly handing over your money to criminals," FCA Director of Payments and Digital Assets Matthew Long warned.

In May 2023, the FCA conducted an inspection for illegal crypto ATMs in three cities: Exeter, Nottingham and Sheffield, due to concerns that local citizens could launder money through cryptocurrencies. However, the UK's National Audit Office (NAO) criticized the FCA for not being strict enough in regulating crypto ATMs.

The UK is not the only state that is eradicating crypto ATMs on its territory. Recently, the German authorities closed a network of 13 crypto ATMs installed in public places without the necessary permits from the regulator.

 

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The UK's Financial Conduct Authority (FCA) has charged a London resident with installing and operating a network of crypto ATMs without a license from this regulator.

The Olumide Osunkoya network, the agency claims, processed transactions worth about $2.6 million ($3.4 million) from December 2021 to September 2023. According to the Office, the Osunkoye case falls within the scope of the Anti-Money Laundering and Countering the Financing of Terrorism Regulation 2017.

The FCA announced that there are currently no legally installed crypto ATMs in the UK, and warned all owners of digital assets about high risks, including the possibility of losing all invested funds, when using such devices.

The case has been transferred to Westminster Magistrates' Court and is scheduled to be heard on September 30. Osunkoye became the second British citizen suspected of illegally operating a network of illegal crypto ATMs.

Earlier, the UK police accused a 37-year-old resident of Kent, Habibur Rahman, of installing unregistered crypto ATMs and laundering 300,000 pounds ($393,700) through cryptocurrencies.

 

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UK Cryptocurrency ATM Operator Pleads Guilty to Fraud and Money Laundering

The owner of a cryptocurrency ATM in the UK has pleaded guilty to multiple charges related to his business, including fraud and money laundering.

According to an announcement on September 30, Olumide Osunkoya operated at least 11 cryptocurrency ATMs across the UK without the required registration with the Financial Conduct Authority (FCA), leading to the first prosecution in the country under money laundering, terrorist financing and transfer of funds regulations.

Between December 2021 and September 2023, the ATMs, installed in local stores, processed more than £2.6 million (~$3.5 million) in crypto transactions. Evidence presented in court showed that many of the ATM users were likely involved in money laundering or tax evasion. According to the claims:

“He continued to operate and grow a network of cryptocurrency ATMs in local convenience stores across the UK despite being refused registration by the FCA in 2021”.

Osunkoya allegedly made significant profits from the operation, with transaction fee margins ranging from 10% to 60%.

According to the FCA, he also attempted to circumvent regulations by creating a false alias and falsifying documents to conceal the illegal activity. He was further charged with possessing £19,540 (~$26,000) in cash allegedly obtained from his cryptocurrency ATM network.

Related: Global Bitcoin ATM Network Loses Over 600 Machines in 2 Months

If Osunkoya is convicted of the maximum sentence on all charges, the total possible prison term could reach 26 years. Sentencing will be held at a later date.

Charges against the second person, Sally Lavington Osunkoya, were dropped after pleading guilty.

Since January 2020, the FCA has been the UK’s anti-money laundering and counter-terrorist financing supervisor for businesses dealing in crypto assets. Despite the growing popularity of digital assets in the country, the FCA has ordered all unregistered crypto ATMs to be closed in March 2022. There are currently no legally registered crypto ATM operators in the UK.