STORY
An unauthorised crypto investment company has been wound up after an Insolvency Service investigation found no evidence that genuine trading took place. Key Coin Assets Ltd promoted returns of between 40% and 100%, including online claims of no fees and no risk. Nine investors who complained to Action Fraud paid more than £300,000 to the company between them.
Investigators said money received from new investors appeared to have been used to make payments to earlier investors, while funds were also transferred rapidly into the personal account of the company’s director. The company posted customer testimonials without permission and told investors not to use words such as crypto or investment in bank payment references. Its Companies House filings also claimed assets of up to £42 million, a figure the Insolvency Service said was far above the level suggested by its banking activity.
Key Coin Assets Ltd was wound up by the High Court in London on 11 August and the Official Receiver has been appointed as liquidator. The Insolvency Service and Financial Conduct Authority are warning people considering crypto investments to check a firm’s regulatory status and to be cautious about promises of guaranteed high returns or no risk. Most cryptoasset activities are not currently regulated in the UK, although wider regulation is due to take effect from October 2027.