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A UK-based cryptocurrency investment company, Key Coin Assets Ltd, has been shut down after an investigation found that it operated a fraudulent Ponzi scheme and had no evidence of conducting genuine cryptocurrency trading. The company, which promised investors returns of between 40 and 100 per cent, was wound up at the High Court in London on August 11 following action by the UK Insolvency Service.
The company attracted investors with claims of guaranteed high returns, including an online advertisement promising “0 Fees, 0 Risks.” However, investigators found no evidence that Key Coin Assets carried out the trading activities it claimed. Nine investors were identified as having lost more than £300,000 collectively after putting money into the scheme.
The case highlights the risks surrounding cryptocurrency investment schemes that promise unusually high or guaranteed profits. UK authorities continue to warn consumers to verify that investment firms are properly authorised and to be cautious of businesses offering returns that appear too good to be true.
