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Crypto Scam: UK Shuts Down 2 Firms Involved in Crypto Fraud

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Crypto Scam: UK Shuts Down 2 Firms Involved in Crypto Fraud

The crypto scam is a pain in the neck for governments around the world. It involves a huge sum of money and as technology advances, the tricks that scammers use behind the scheme also increase.

UK authorities have ordered the closure of two businesses involved in crypto-related fraud. An investigation into the two firms revealed their accounts had been used in a £1.3million crypto scam, authorities said.

According to a survey of Insolvency service.

“Micasa and its affiliate, Remultex, have been forced out of business after huge payments and misuse of rebound loans went unexplained,” the press announcement said in part.

Court Steps Into Action Vs. Crypto Scam

The Manchester High Court judge ruled that the closure of businesses involved in the crypto scam was necessary to protect the public.

According to the judgment, the companies broke commercial laws and operated without commercial “probity”, resulting in illicit money transfers.

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

Remultex received payments from three other companies totaling around £250,000 in December 2020, in addition to Bounce Back loan money secured from Micasa.

Cryptocurrency adoption has grown exponentially over the past year. Despite this rapid expansion, there has been an upsurge in criminal activity associated with the bitcoin industry.

Crypto Scam Nets $14 Billion

The use of cryptocurrencies is growing faster than ever. In 2021, the aggregate trading volume of all cryptocurrencies tracked by Chainalysis increased by 567% to $15.8 trillion, compared to 2020 figures.

Fortune reported in January this year that in 2021, criminals involved in crypto scams stole a record $14 billion in cryptocurrencies, which is an increase of almost 80% year-on-year. former.

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

Steps have been taken by law enforcement to combat these illegal activities and protect the safety of investors in the UK.

Meanwhile, Hong Kong is among the countries with the highest number of crypto enthusiasts.

According to the most recent reports, the number of crypto frauds in the bustling financial district has increased significantly this year. About a quarter of these frauds involve crypto assets.

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

Featured image from Money, chart from TradingView.com

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