Crypto Firm Shut Down After Nine Investors Lose Over £300,000

UK Court Winds Up Key Coin Assets

The U.K. government announced on Aug. 18 that a London court had wound up Key Coin Assets Ltd. a week earlier. An investigation by the Insolvency Service, the U.K. government agency that investigates corporate misconduct and insolvency, found no evidence that the company carried out any of the crypto trading it advertised.

Nine people who took their complaints to Action Fraud, the U.K.’s national fraud and cybercrime reporting center, paid the company more than £300,000 between them.

Unauthorized investment schemes remain a live risk for U.K. savers, with Britain’s full crypto authorization regime still more than a year away. The company told investors it could guarantee returns ranging from 40% to 100%, while one online promotion claimed “0 Fees, 0 Risks.”

Insolvency Service Chief Investigator Mark George said:

“Key Coin Assets Ltd promised guaranteed returns but delivered nothing. Their behavior displayed all the hallmarks of a Ponzi-style scheme.”

Money from newer investors appeared to have gone toward paying off earlier ones rather than into any investment, the Insolvency Service noted.

Funds Moved Into Director’s Personal Account

Bank records examined by investigators showed customer funds were often transferred into the company director’s personal account within hours or on the same day they arrived. The money then became difficult to trace, while accounting records requested by the Insolvency Service were not provided during the investigation.