The UK High Court has appointed liquidators to administer the GPay cryptocurrency trading platform’s affairs, following allegations the company is “nothing but a scam.” The crypto exchange, which also operates under Cryptopoint and XtraderFX, lured in investors through the online through a range of ads on social media platforms. According to the Insolvency Service, the ads falsely claimed the endorsement of high profile business people and television personalities.
The authorities investigated the platform after receiving several complaints.
Following a series of complaints to local authorities, the agency opened an investigation into the crypto exchange Gpay. The authorities concluded that the crypto firm had been operating on a fraudulent basis. In a strong assessment of the alleged scam, UK Insolvency Service chief investigator David Hill said the crypto firm had been tricking clients into soliciting investment under false pretenses. The chief investigator further said that GPay persuaded customers to part with substantial sums of money to invest in cryptocurrency trading. This was nothing but a scam as the crypto firm tricked their clients into using their online platform under false pretenses, and no customer has benefited as their investments have been lost.
Around 108 investors lost $1.8 million through the platform.
Among several allegations presented to the court were evidence of withdrawal requests being denied for non-active traders. The investigation found that at least 108 clients had lost £1.5 million through the platform—equivalent to approximately $1.8 million. The case was brought to a close later last month with the appointment of liquidators following a petition by the Secretary of State for Business, Energy and Industrial Strategy. The UK regulators have been swift in taking action against fraudulent crypto companies in the last few months or so. Crypto regulations are being enforced in the UK as proposed by the Financial Action Task Force last year.