UK shuts crypto firm over alleged Ponzi scheme

A UK crypto concern institution that promised investors returns of up to 100 per cent has been unopen down aft an probe recovered nary grounds that it carried retired genuine cryptocurrency trading.

Key Coin Assets Ltd was coiled up by the High Court successful London connected August 11 pursuing enactment by the Insolvency Service.

The institution had promised investors guaranteed returns of betwixt 40 and 100 per cent. One of its online adverts adjacent claimed, “0 Fees, 0 Risks.”

According to the Insolvency Service, 9 investors mislaid much than £300,000 successful total.

Investigators recovered that wealth from caller investors appeared to person been utilized to wage earlier investors, a signifier they described arsenic accordant with a “Ponzi-style” scheme.

Mark George, Chief Investigator astatine the Insolvency Service, said the institution failed to present what it promised.

“Key Coin Assets Ltd promised guaranteed returns but delivered nothing. Their behaviour displayed each the hallmarks of a Ponzi-style scheme,” helium said.

“Investors were told their wealth was being invested successful crypto, but our probe recovered nary grounds of immoderate genuine trading astatine all. Instead, funds were simply moved into the director’s idiosyncratic account, often wrong hours of arriving,” George added.

Bank records showed that investors’ wealth was often transferred ...