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

UK's Insolvency Service has warned potential crypto investors to check if crypto investment firms are registered, after customers lost hundreds of thousands of pounds to a "Ponzi-style" scheme.

Key Coin Assets Ltd. promised investors it could guarantee returns of up to 100 percent, with one online post claiming "0 Fees, 0 Risks", but investors lost hundreds of thousands of pounds.

However, the Insolvency Service acted swiftly to have the company shut down when it found no evidence that any trading actually took place.

Nine investors who complained to Action Fraud paid more than £300,000 to the company between them, investigations revealed.

Key Coin Assets Ltd. was wound up at the High Court in London last week.

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.