Nigerian Man Begins Crypto ATM Network, Government Takes Action after Processing N5.5bn
- The UK government has accused a Nigerian man, Olumide Osunkoya, of running an illegal crypto ATM network
- Cryptocurrency ATMs are machines that let users exchange fiat or standard currencies for crypto
- The UK government said Osunkoya’s crypto networks processed about N5.5 billion worth of cryptos across multiple locations
CHECK OUT: Education is Your Right! Don’t Let Social Norms Hold You Back. Learn Online with LEGIT. Enroll Now!
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The United Kingdom Financial Conduct Authority (FCA) has charged 45-year-old Nigerian Olumide Osunkoya for allegedly operating an illegal cryptocurrency ATM network.
Cryptocurrency ATMs are like conventional ATMs that let users exchange fiat or standard currencies for cryptos.
Source: Getty Images
Osunkoya faces money laundering charges
They connect to a crypto exchange, converting deposited cash into cryptos. Transactions are processed on the blockchain, a digital ledger of financial transactions for cryptos.
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
According to reports, the FCA disclosed that Osunkoya was charged with two offences under the money laundering and terrorist financing regulations.
The authority said the charges against the Nigerians were the first criminal prosecution of the activity.
They also stated that the offences relate to fake documents created and used for activities and one offence of possession of criminal property relating to the suspected proceeds of his crypto ATM business.
Osunkoya’s ATMs process N2.5 billion in crypto
The authority disclosed that Osunkoya’s machines processed about N5.597 billion worth of crypto transactions across multiple locations between December 2021 and September 2023.
They also disclosed that he had been the director of Gidipus Limited before acting alone, as the company registration application was rejected in 2021.
He is expected to appear in court at the end of the month.
FG clamps down on Binance, approves others
The development came as the Nigerian government clamped down on the crypto exchange platform Binance, accusing it of manipulating the naira.
The governor of the Central Bank of Nigeria (CBN) said that billions of dollars of transactions passed through Binance in one year, leading to the crash of the local currency.
The face-off led to Binance turning off its naira feature, and the Nigerian government arrested two of the platform's executives.
Meanwhile, in a twist of events, the Nigerian Securities and Exchange Commission (SEC) approved crypto platforms in principle, leading to speculation that the country may legalise crypto trading.
Expert predicts Bitcoin will hit $150k
Legit.ng earlier reported that data by Coinglass had shown that the cryptocurrency market experienced a significant loss, with $900 million lost in 24 hours.
According to the report, long positions accounted for $764 million of the liquidations, while short positions accounted for $124 million.
Due to the possibility of positions being aggressively terminated by the exchange's risk engine once they hit the liquidation price, the liquidations brought to light the risks that traders on unregulated Bitcoin derivative exchanges confront.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
