A High court in the U.K. has shut down a crypto trading platform GPay Ltd after losing £1.5 million of clients’ funds. The online company falsely claimed support from high-profile entrepreneurs.
June 30 2020 | AtoZ Markets – Online cryptocurrency trading firm GPay Ltd was wound up in the public interest on June 23, 2020, in the High Court before Deputy Judge Baister. As it stands now, the High court has appointed an official receiver as the company’s liquidator.
Gpay ltd shuts down after losing £1.5 million of clients’ funds
The online cryptocurrency trading company, which falsely claimed support from high-profile entrepreneurs, has been wound-up after losing £1.5 million of clients’ funds.
The company, which traded as XtraderFX and formerly as Cryptopoint, targeted people in the UK and abroad, advertising its services online and via social media channels. Customers were encouraged to use GPay’s online trading platform through advertisements that falsely claimed the service has the support of entrepreneurs that starred in a prime-time TV show and a high-profile money saving website.
Following complaints, however, the Insolvency Service conducted confidential inquiries into GPay’s activities before investigators uncovered that at least 108 clients claimed they had lost in total just under £1.5 million while using the company’s online trading platform. In many instances, clients would lose money after paying insurance to cover their losses.
Moreover, clients couldn’t withdraw funds from their trading accounts until they submit copies of their photo ID, a utility bill and debit or credit card. This, however, was not GPay’s requirement when accepting clients’ deposits. Some customers also reported that couldn’t withdraw their deposit because of not trading actively with them.
GPay did not defend the public interest petition
GPay did not defend the public interest petition and in winding-up the company, the court concluded that the company demonstrated a lack of commercial probity, failed to file statutory accounts, and had no legitimate presence at its registered office address, which GPay appeared to have abandoned.
David Hill, a Chief Investigator for the Insolvency Service, said:
“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 to use their online platform under false pretences and no customer has benefited as their investments have been lost”.
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