A U.K. court has wound up Key Coin Assets Ltd. following an investigation by the Insolvency Service, which revealed that the firm displayed hallmarks of a Ponzi-style scheme and carried out no genuine cryptocurrency trading.
The winding-up order was issued by a London court on August 11 and announced by the U.K. government on August 18. The action followed complaints to Action Fraud, the country's national fraud and cybercrime reporting center, from nine investors who collectively paid more than £300,000 to the company.
Investigators discovered that Key Coin Assets had promised guaranteed returns ranging from 40% to 100%, with online promotions claiming "0 Fees, 0 Risks." Bank records indicated that customer funds were frequently transferred into the company director's personal account within hours or on the same day of arrival, making the money difficult to trace. Furthermore, the firm failed to provide requested accounting records, frequently changed its official address, posted unauthorized customer testimonials, and instructed investors to avoid terms like "crypto" and "investment" in bank payment references.
The Financial Conduct Authority (FCA) had previously added Key Coin Assets to its list of unauthorized firms on September 12, 2024. Following the High Court order, the Official Receiver has been appointed as the liquidator of the company.
U.K. authorities continue to warn savers to scrutinize guaranteed-return offers and check the FCA's warning lists before engaging with financial firms, noting that unauthorized entities leave consumers without protections from the Financial Ombudsman Service or the Financial Services Compensation Scheme.
