$1 680 000 USD
DESCRIPTION OF EVENTS
"Founded in August 2017," "[t]he platform, formerly known as Cryptopoint, served users in the UK and abroad." "The exchange, which also operates under Cryptopoint and XtraderFX, solicited investment online through a range of ads on social media platforms." "GPay Ltd was incorporated on 30 August 2017, Company Registration number 10938332. The registered office of the company is 18 Stoke Road Slough, Stoke Road, Slough, England, SL2 5AG."
"XtraderFX is a powerful online digital asset exchange platform. Take advantage of our innovative trading tools and be successful on the financial markets." "GPay demonstrated “a lack of commercial probity”." "[T]he firm “failed to file statutory accounts”, and had “no legitimate presence at its registered office address” which it had “abandoned”." "[A]ds falsely claim the endorsement of high profile business people and television personalities."
"The firm’s liquidation follows proven claims of false advertising and the loss of £1.5 million in customer money." "Following a series of complaints to local authorities, the agency opened an investigation into the firm, concluding that it had been operating on a fraudulent basis." "Confidential inquiries by the Insolvency Service found “at least 108” of GPay’s clients claimed to have lost “just under £1.5 million” while using the its online trading platform."
"Among the allegations presented to the court was evidence of withdrawal requests being denied for non-active traders." "In some cases, clients lost money despite paying insurance which was meant to retrospectively cover their losses." "If clients attempted to remove funds from their trading accounts, they were advised that no withdrawals could be made until they submitted copies of their photo ID, a utility bill and debit or credit card. This level of information, however, was not asked by GPay when they accepted clients’ deposits."
"On 23 June, the court “wound up” GPay “in the public interest”." "“This was nothing but a scam as GPay tricked their clients to use their online platform under false pretences and no customer has benefited as their investments have been lost,” says Hill." "The UK High Court ordered GPay to pay for the loss of £1.5 million ($1.8m) in investor funds.""
"We welcome the court’s decision to wind-up GPay as it will protect anyone else becoming a victim. This scam should also serve as a warning to anyone who conducts trading online that they should carry-out appropriate checks before they invest any money that the company is registered and regulated by the appropriate authorities."
The company performed a series of fraudulent and suspicious practices, including false testimonials of famous people, blocking withdrawals, and losing investor funds.
In the end, the company was shut down by the court.
CipherTrace Cryptocurrency Crime and Anti-Money Laundering Report 2020 (Jun 20)
Crypto trading platform GPay shut by UK High Court - FinTech Futures (Jun 20)
UK High Court orders ‘nothing but scam’ GPay exchange to shut down - CoinGeek (Jun 20)
Online cryptocurrency trading platform shut down by courts - GOV.UK (Jun 20)
XtraderFX Reviews | Read Customer Service Reviews of www.xtraderfx.com (Jun 20)
CryptoPoint Review – is cryptopoint.com scam or good crypto broker? (Jun 20)
XtraderFX review – Is xtraderfx.com scam or good forex broker? (Jun 20)