The High Court of the United Kingdom has appointed the Official Receiver as liquidator of the cryptomoney trading platform, GPay Ltd.
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According to an announcement published by the UK’s Insolvency Service on 30 June, the crypto currency exchange showed signs of being „nothing more than a scam“.
Abundance of false declarations
The company, formerly known as XtraderFX and Cryptopoint, advertised its services online and through social networks. The Insolvency Service claims that the ads falsely claimed that the service was backed by entrepreneurs who appeared on an unnamed British primetime television show and a high-profile money-saving website.
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After the local authorities received the complaints, the Insolvency Service proceeded with confidential investigations into GPay’s activities. These revealed that at least 108 customers claimed to have lost around GBP 1.5 million (USD 1.84 million) while trading on the platform.
GPay is allegedly a ’scam‘.
David Hill, chief investigator of the UK Insolvency Service, said:
„GPay persuaded his clients to part with substantial sums of money to invest in cryptomoney trading. This was nothing more than a scam, as GPay misled its clients to use its online platform under false pretences and no client has benefited as their investments have been lost“.
The Court also received allegations that clients were denied withdrawal Crypto Trader requests if they had not actively traded their funds deposited within GPay.
GPay’s case was concluded on 23 June 2020 with a petition filed by the Secretary of State for Business, Energy and Industrial Strategy, or BEIS.
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Recently, the UK Advertising Standards Authority, or ASA, and the Internet Advertising Bureau, or IAB, launched a new system to detect and remove fraudulent advertisements online.
Cointelegraph also reported in 2019, that the UK’s leading financial regulator, the Financial Conduct Authority, or FCA, said that investors in crypto currencies in the country lost more than USD 34 million between 2018 and 2019, due to crypto currency scams.