At least 108 customers from the UK and other parts of the world were victims of scam. To start trading on the platform, customers did not need to validate their identity.
Cryptocurrency exchange GPay, registered in Slough, England, scammed at least 108 customers from the UK and other parts of the world, which led British authorities to liquidate it. The customers state that they lost a total of GBP 1.5 million (equivalent to about USD 2 million) after using the exchange.
The platform convinced its victims to entrust their money to it, through advertisements claiming that famous businessmen endorsed and recommended their service. These executives starred in a prime time TV show and on a savings website for high-profile people. This information appeared in a press release that the UK Government issued.
Formerly called XtraderFX, GPay offered its customers a platform for cryptocurrency exchange that allowed them to trade without the need for experience. The cryptocurrency exchange said that experienced traders and innovative tools supported it.
One of the wrongdoings that the GPay platform committed was asking their customers to deposit their funds without first confirming their identity. However, at the time they made withdrawals of their money, it required them to send their identity document, service invoice, or credit card.
Some customers even paid insurance for the loss of their funds. However, the platform took away their investment, as well as the insurance money. Finally, GPay prevented its customers from withdrawing their money without them having previously conducted some trading operations.
The public interest led to the liquidation of GPay Ltd on June 23rd in a Higher Court before the Deputy Judge of the Insolvency and Companies Court. Likewise, there was an official receiver assigned to liquidate the company.
Those people who have been victims of fraud by companies can make inquiries or complaints. To this end, the UK Insolvency Service has made a telephone number and an e-mail address available to them.
David Hill, Chief Investigator for UK Insolvency Service, appreciated the court’s decision to liquidate Gpay. He said that, in this way, it will prevent other people from becoming victims.
The official added that this scam should serve as a warning to those who conduct trading operations online. These users must perform the appropriate controls before investing their money, in addition to validating whether the corresponding authorities have registered and regulated the company in question.
This year, the UK saw an increase in the number of people registered to trade cryptocurrencies. Most members of a group of respondents were familiar with crypto assets before doing this activity. However, there are always several people who are vulnerable to scams.
To conclude, all those people who wish to use cryptocurrency exchanges should receive information on the most common scams and how to avoid them. On the other hand, authorities should help the victims of those who manage fraudulent businesses and ensure that the latter do not deceive more people.
By Willmen Blanco