UK courts shutter alleged fraudulent cryptocurrency exchange

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Posted on: July 1, 2020 6:51 pm EDT

GPay’s business practices and payout policies leave judges and regulators concerned

The UK High Court has made a decision regarding a cryptocurrency trading platform, GPay Ltd., which, in the court’s opinion, is nothing but a scam. The UK Insolvency Service published an announcement yesterday, explaining that, after conducting confidential inquiries, GPay showed signs of being a fraud. The firm previously known as XtraderFX and Cryptopoint used online services and social media channels to advertise its services.

The Insolvency Service states that advertisements falsely alleged that the company is being endorsed by entrepreneurs. These entrepreneurs and celebrities appeared in a UK primetime TV show and also on a high-profile money saving website. The investigation started due to complaints received by local authorities, which motivated the Insolvency Service to start a series of confidential inquiries regarding the company’s activities. The investigation found that at least 180 clients reported losing close to $1.84 million while trading on the platform.

The chief investigator for the Insolvency Service, David Hill, commented on the matter, stating, “GPay persuaded customers to part with substantial sums of money to invest in cryptocurrency trading. This was nothing but a scam, as GPay tricked their clients into using their online platform under false pretences and no customer has benefited as their investments have been lost.” Adding to that, the court received some reports that the company was rejecting withdrawals of funds if the user had not actively traded their deposited funds within GPay.

The final word on the case was given on June 23, 2020, when a petition was presented by the Secretary of State for Business, Energy and Industrial Strategy, or BEIS. The country has been working on a new system to spot and eliminate fraudulent online ads through the Advertising Standards Authority and the Internet Advertising Bureau.