{"id":429493,"date":"2020-07-03T20:00:49","date_gmt":"2020-07-03T20:00:49","guid":{"rendered":"https:\/\/wncen.com\/?p=429493"},"modified":"2024-06-11T21:12:02","modified_gmt":"2024-06-11T21:12:02","slug":"uk-regulators-shut-down-crypto-exchange-following-1-5m-scam","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/uk-regulators-shut-down-crypto-exchange-following-1-5m-scam\/","title":{"rendered":"UK Regulators Shut Down Crypto Exchange Following \u00a31.5m Scam"},"content":{"rendered":"
GPay Limited<\/a>, which traded as XtraderFX (formerly CryptoPoint) has been shut down by UK authorities following investigations into its practices.<\/p>\n The firm has been on the radar of the Financial Conduct Authority<\/a> for over two years. But a High Court<\/a> hearing, before Deputy Insolvency & Companies Court Judge Baister, finally forced it to close last week.<\/p>\n “This firm is not authorised by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorisation.”<\/p><\/blockquote>\n Investigators discovered that at least 108 victims had lost \u00a31.5 million in total, as a result of using the online crypto trading platform.<\/p>\n The URL address www.xtraderfx.com now leads to a secure connection failed screen.<\/p>\n <\/p>\n Users became suspicious when asked to submit copies of their photo ID, a utility bill, and a debit\/credit card, following a withdrawal request.<\/p>\n While this is a standard industry practice, especially from reputable crypto exchanges with close ties to regulators, users usually deal with KYC and AML requirements<\/a> on sign up.<\/p>\n David Hill, Chief Investigator for the Insolvency Service, said the crypto exchange operated by GPay was entirely a scam. With that, Hill stressed the importance of conducting suitable checks on any trading platform, especially when large sums of money are involved.<\/p>\n “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.”<\/p><\/blockquote>\n The XtraderFX crypto trading platform had used social media adverts to lure rookie traders who were looking to get rich quick.<\/p>\n The adverts used by XtraderFX featured images and the name of Martin Lewis of moneysavingexpert.com<\/a> – a consumer champion in the world of UK finance.<\/p>\n <\/p>\n His TV show, The Martin Lewis Money Show<\/a>, on ITV<\/a>, occupies a prime time slot that offers money tips and consumer advice.<\/p>\n Lewis raised the issue with Facebook when he first became aware of the fraud back in 2018. But a lack of action on their part forced Lewis to launch court proceedings against the social media giant on the grounds of defamation.<\/p>\n Lewis claimed that over 1,000 scam adverts, featuring his image or name, had appeared on the social media platform, even after he had informed them of the problem.<\/p>\n The matter was settled by an agreement to withdraw legal action if Facebook donated \u00a33 million to Citizens Advice<\/a> as part of their initiative to deliver a new UK Scams Action project.<\/p>\n Facebook also agreed to launch a new UK specific scam reporting tool manned by a dedicated team.<\/p>\nXtraderFX homepage. (Source: 55brokers.com<\/a>)<\/pre>\n
Scam Crypto Exchange Used Facebook to Bait Victims<\/strong><\/h2>\n
Source: moneysavingexpert.com<\/pre>\n