In a notable legal development, a trader from London has entered a not guilty plea concerning allegations of operating an illegal crypto ATM business and laundering approximately $395,000 in criminal proceeds.
Habibur Rahman, hailing from East Ham, London, faces serious charges linked to the management of an unregistered crypto ATM enterprise and the illegal conversion of cash into cryptocurrency.
Rahman was arrested in April 2023 after police conducted a search of his mobile phone shop in Chatham, Kent, where they confiscated multiple crypto ATMs. According to reports from the BBC, a spokesperson for Kent Police confirmed the operation. Under the regulations set by the Financial Conduct Authority (FCA), all crypto ATM operators are required to register with the agency—an obligation that Rahman is accused of neglecting.
During his court hearing at Medway Magistrates’ Court, Rahman confronted charges of running an unregulated business and unlawfully converting cash into cryptocurrency between April and June 2022. Matthew Long, the FCA’s director of payments and digital assets, emphasized the risks tied to crypto investments, warning, “If you are using one of these machines, you could be handing your money to criminals.”
This case comes on the heels of the FCA’s intensified enforcement efforts, evidenced by another case involving Olumide Osunkoya, a London trader who faced charges for unlawfully operating multiple crypto ATMs that processed around £2.6 million (approximately $3.4 million) in transactions. Osunkoya subsequently pleaded guilty to five offenses related to his illegal ATM network, marking a historic conviction in the UK.
The prosecution of Rahman highlights the FCA’s ongoing commitment to cracking down on unregistered crypto activities. This initiative is part of a broader strategy to strengthen regulatory oversight in the cryptocurrency sector, particularly as the risks associated with such operations continue to escalate. The FCA’s vigilance reflects its efforts to safeguard consumers and uphold financial integrity in an evolving digital landscape.
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