In a decisive move against unregulated cryptocurrency activity, London authorities have arrested two individuals and seized seven illegal crypto ATMs believed to be linked to a money laundering operation. The arrests took place following a series of coordinated raids across four sites in southwest London.
The operation, led jointly by the Financial Conduct Authority (FCA) and the Metropolitan Police Service, uncovered crypto ATMs operating without FCA registration. In the UK, any business dealing in crypto assets must be registered with the FCA and meet strict anti-money laundering (AML) standards. Since there are currently no legally registered crypto ATMs operating in the UK, all machines seized were considered to be running unlawfully.
The two suspects, aged 38 and 44, were detained and later released under investigation. Authorities are now examining financial records and digital evidence to assess the scale of the activity and whether it links to broader criminal networks.
Therese Chambers, FCA’s Executive Director of Enforcement, stated that these illegal machines pose a serious risk to financial integrity. She stressed that unregistered operators undermine the trust needed for the crypto sector to function safely. Her comments reinforced the FCA’s zero-tolerance stance toward unauthorized crypto services.
Detective Inspector Geoff Donoghue of the Met Police’s specialist crypto team highlighted how important cross-agency collaboration is in tackling tech-driven crime. He added that removing these machines not only disrupts criminal operations but also helps prevent everyday users from unknowingly becoming part of illicit schemes.
This crackdown comes amid increasing concerns that crypto ATMs are being exploited to clean proceeds from drug trafficking, fraud, and other organized crimes. Because these machines can enable anonymous transactions, they are attractive tools for criminals to convert large amounts of cash into digital assets quickly and discreetly.
Investigations are ongoing, with further arrests and seizures possible in the coming weeks. Officials are also working to determine whether similar operations are active elsewhere in the country.
The FCA has issued a fresh warning to the public, advising against using crypto ATMs anywhere in the UK, as all such services currently operate outside the law. Those engaging with them, even unknowingly, could find themselves at legal or financial risk.
This case sends a strong message: financial crime involving crypto will not be tolerated, and enforcement bodies are fully equipped to detect, investigate, and shut down illegal activities, regardless of how advanced or discreet they may appear.
