UK Regulators Close Down Crypto Exchange Following ₤ 1.5 m Fraud

UK Regulators Close Down Crypto Exchange Following ₤ 1.5 m Fraud

GPay Limited, which traded as XtraderFX (previously CryptoPoint) has actually been closed down by UK authorities following examinations into its practices.

The company has actually been on the radar of the Financial Conduct Authority for over 2 years. However a High Court hearing, prior to Deputy Insolvency & Companies Court Judge Baister, lastly required it to close recently.

” This company is not authorised by us and is targeting individuals in the UK. Based upon details we hold, our company believe it is continuing managed activities which need authorisation.”

Detectives found that a minimum of 108 victims had actually lost ₤ 1.5 million in overall, as an outcome of utilizing the online crypto trading platform.

The URL address now causes a safe and secure connection stopped working screen.

scam crypto exchange XtraderFX

 XtraderFX homepage. (Source:

Users ended up being suspicious when asked to send copies of their picture ID, an energy expense, and a debit/credit card, following a withdrawal demand.

While this is a basic market practice, specifically from credible crypto exchanges with close ties to regulators, users generally handle KYC and AML requirements on register.

David Hill, Chief Private Investigator for the Insolvency Service, stated the crypto exchange run by GPay was totally a fraud. With that, Hill worried the significance of performing ideal examine any trading platform, specifically when large amounts of cash are included.

” We invite the court’s choice to end up GPay as it will safeguard anybody else ending up being a victim. This rip-off ought to likewise function as a cautioning to anybody who carries out trading online that they need to perform suitable checks prior to they invest any cash that the business is signed up and managed by the suitable authorities.”

Fraud Crypto Exchange Utilized Facebook to Bait Victims

The XtraderFX crypto trading platform had actually utilized social networks adverts to entice novice traders who were aiming to get abundant fast.

The adverts utilized by XtraderFX included images and the name of Martin Lewis of— a customer champ worldwide of UK financing.

crypto scammers used images of Martin Lewis to lure victims


His TELEVISION program, The Martin Lewis Money Show, on ITV, inhabits a prime-time show slot that provides cash suggestions and customer guidance.

Lewis raised the problem with Facebook when he initially ended up being conscious of the scams back in2018 However an absence of action on their part required Lewis to release court procedures versus the social networks giant on the premises of character assassination.

Lewis declared that over 1,000 rip-off adverts, including his image or name, had actually appeared on the social networks platform, even after he had actually notified them of the issue.

The matter was settled by a contract to withdraw legal action if Facebook contributed ₤ 3 million to Citizens Advice as part of their effort to provide a brand-new UK Scams Action job.

Facebook likewise consented to release a brand-new UK particular rip-off reporting tool manned by a devoted group.

With regard to XtraderFX’s forced insolvency, Lewis had actually blended sensations about the experience. However, he described why he select to take legal action against Facebook, instead of XtraderFX straight.

” I do not understand whether to dance a jig that these despicable residue have actually been closed down, or cry that they handled to take many individuals’s cash. I have actually been battling rip-off advertisements with my face on for 4 years now — unfortunately 1,000 s have actually appeared. It’s constantly been difficult to get at the real fraudsters, which is why I took legal action against Facebook to attempt and cut off their promotion.”

What’s more, comparable to Hill’s guidance, Lewis mentioned that rip-off adverts frequently appear on legitimate sites and even in broadsheet papers. With that, people require to be more hesitant.

 Included Image from Shutterstock

Samuel Wan Read More.