Fraudulent crypto exchange shut down by UK High Court

The UK High Court has designated the Official Receiver as liquidator of GPay Ltd, the cryptocurrency trading platform.

The UK Insolvency Service alleged that GPay is a “scam” https://t.co/WoPgwjrcbZ

— Cointelegraph (@Cointelegraph) June 30, 2020

As per an announcement by the UK Insolvency Service, the cryptocurrency exchange displayed signs of being “nothing but a scam”.

The firm, also previously known as XtraderFX and Cryptopoint, promoted its services on the internet and through various social media channels. The Insolvency Service states that the adverts falsely accused that the service was recommended by entrepreneurs who appeared in an unnamed UK TV show and a high-profile money saving website.

After complaints by the local authorities, the Insolvency Service begun with confidential inquiries into GPay’s activities. These released that at least 108 clients had lost around £1.5 million ($1.84 million) while trading on the platform.

The Court was also reported that clients were refused withdrawal requests if they had not actively transferred their deposited funds within GPay. On June 23, GPay’s case was concluded with a petition given by the Secretary of State for BEIS.

Recently, the United Kingdom Advertising Standards Authority and the Internet Advertising Bureau started a new system to identify and remove fraudulent ads online.

The Financial Conduct Authority claimed that crypto investors in the country lost about $34 million because of cryptocurrency and forex scams between 2018–2019.