Investors Lose Heavily To 'Ponzi-style' Crypto Scheme In UK

Now, the Insolvency Service and FCA are warning others to be cautious of similar offers.

Those who are thinking of investing in crypto have been advised to check the FCA's Firm Checker to see if the firm is registered, which means it has been through some FCA checks, and see its list of unauthorised firms to avoid.

Consumers have been alerted to be wary of guaranteed high returns and think twice if a firm asks them to avoid normal payment references or pushes them to recruit others.

Mark George, Chief Investigator at the Insolvency Service, said, "Key Coin Assets Ltd. promised guaranteed returns but delivered nothing. Their behaviour displayed all the hallmarks of a Ponzi-style scheme."

Investors were told their money was being invested in crypto, but our investigation found no evidence of any genuine trading at all. Instead, funds were simply moved into the director's personal account, often within hours of arriving.

We would urge anyone considering a similar offer to check whether a firm is registered before handing over their money, and to be deeply sceptical of anyone promising guaranteed returns with no risk."

Insolvency Service investigations found that money paid in by new investors appeared to have been used by Key Coin Assets to pay off earlier ones.

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