The UK Supreme Court has ordered the closure and liquidation of GPay, a cryptocurrency trading platform.
On June 30, the British government insolvency service issued a notice explaining that GPay Ltd, which traded as XtraderFX - formerly known as Cryptopoint - closed after losing 1,5 1,8 million ($ XNUMX million) in funds. investors.
At least 108 customers lost cash, even when they chose to be insured to cover any future financial losses. When traders tried to withdraw any money from the platform, they fell on a wall, facing identity claims and utility documents.
The XtraderFX website is now closed, but cashed versions of the domain reveal promises of an easy-to-use cryptographic trading platform as well as a mining platform.
The platform promised to provide a way for those with no previous experience in cryptocurrency transactions to invest, with the support of experienced traders and computer tools that would facilitate work their.
However, cryptocurrency fraud, counterfeit initial currency offerings (ICOs) and exit scams are widespread in the community. While regulators around the world have begun to try to combat fraud, unless a cryptographic stock exchange is registered with a government agency such as the US Securities and Exchange Commission (SEC), investors often negotiate at their own risk.
Trustpilot users complained about deposits made without permission, closed accounts without warning and were harassed through phone calls, urging them to make additional investments.
The use of known, trusted persons to falsely advertise encryption programs is uncontrollable. In this case, some users said they were convinced by a fraudulent advertisement for the TV show Dragons' Den on Facebook.
Martin Lewis, the founder of MoneySavingExpert, has also been fighting the illegal use of his image to promote such programs for years.
The financial expert had previously referred Facebook to the court for abusing his name and image on thousands. advertisements social network fraud. Lewis and Facebook settled the case after Facebook promised to launch a special ad reference tool fraud and donate 3 XNUMX million to a Citizens Advice project to help address complaints related to scams.
The GPay was officially terminated on June 23, and UK officials say the order was issued "in the public interest". No appeal was lodged by the company against the decision.