Crypto Scam: UK shuts down 2 crypto scam companies

Crypto fraud is a pain in the neck for governments around the world. It involves a huge amount of money, and as technology advances, so do the tricks the fraudsters use behind the scheme.

British authorities have ordered the closure of two companies involved in a crypto-related scam. An investigation into the two firms revealed their accounts were used in a £1.3m crypto scam, authorities said.

Micasa had about £1.3m flowing through its accounts between February 2019, when it started operations, and December 2020, according to an investigation by the Insolvency Service.

“Micasa and its affiliate, Remultex, have been forced to cease operations after huge payments and misuse of reverse loans went unexplained,” the press release read in part.

Court Springs Into Action vs. Crypto scam

The Manchester High Court judge ruled that it was necessary to shut down the companies engaged in crypto scams to protect the public.

According to the ruling, the companies broke trade laws and operated without commercial “fairness”, resulting in illegal money transfers.

Responding to the action, David Hope, the Insolvency Service’s chief investigator, said steps would be taken to collect and liquidate the company’s assets and return them to creditors.

Remultex received payments from a further three firms totaling approximately £250,000 by December 2020, on top of the return loan money from Micasa.

The use of cryptocurrencies has increased exponentially over the past year. Despite this rapid expansion, there has been an increase in criminal activity linked to the bitcoin industry.

Crypto fraud brings in 14 billion dollars

The use of cryptocurrencies is expanding faster than ever before. In 2021, the total transaction volume for all cryptocurrencies tracked by Chainalysis increased by 567 percent to $15.8 trillion, compared to 2020 figures.

Fortune reported in January of this year that in 2021, criminals involved in crypto fraud stole a record $14 billion in cryptocurrencies, representing a nearly 80% increase over the previous year.

Last year, transactions with illegal addresses accounted for only 0.15 percent of the total cryptocurrency transaction volume, according to Chainalysis, despite the value of criminal transactions reaching an all-time high.

Actions have been taken by law enforcement agencies to combat these illegal activities and ensure the safety of UK investors.

Meanwhile, Hong Kong is among the nations with the largest number of crypto enthusiasts.

According to the latest reports, the number of crypto scams in the busy financial district increased significantly this year. About a quarter of these scams include crypto assets.

Crypto total market cap at $943 trillion on the daily chart | Source: TradingView.com

Featured image from Money, chart from TradingView.com