UK shuts down crypto firm Key Coin Assets Ltd over alleged Ponzi scheme
A UK crypto investment company, Key Coin Assets Ltd, has been shut down by the High Court in London following an investigation by the Insolvency Service. The company had promised investors guaranteed returns of 40% to 100%, with some online advertisements claiming "0 Fees, 0 Risks." However, investigations found no evidence of genuine trading. Instead, funds from new investors appeared to have been used to pay earlier investors, a pattern consistent with a Ponzi-style scheme. Mark George, Chief Investigator at the Insolvency Service, stated that funds were often transferred directly into the director's personal account, sometimes within hours of receipt, making them difficult to trace. Nine investors reportedly lost over 拢300,000. The company also allegedly posted fake customer testimonials and instructed investors to avoid using terms like "crypto" or "investment" in bank payments, which the Insolvency Service believes was an attempt to avoid scrutiny. Key Coin Assets Ltd failed to provide accounting records when requested and frequently changed its registered address. The Insolvency Service and the Financial Conduct Authority have since warned prospective crypto investors to be cautious of similar offers, advising them to check if firms are registered and to be skeptical of guaranteed high returns.
