Cryptocurrency Trading Company Wound-up

Online cryptocurrency trading company, GPay Ltd, was wound up on 23 June 2020 after losing £1.5 million of clients’ funds. The Official Receiver has been appointed as liquidator of the company.

Why was the company wound up?

The cryptocurrency company was wound up in the public interest.

Customers were encouraged to use the online trading platform, which was advertised online through social media. GPay Ltd falsely advertised that the service was supported by entrepreneurs that starred in TV shows and high-profile money-saving websites.

Following complaints about the company, the Insolvency Service conducted a confidential enquires into the businesses activities. It was uncovered that the company had lost at least 108 clients money. In some cases, clients still lost their money despite purchasing insurance to retrospectively cover their losses.

Problems with the company

As well as the company losing clients money, they also prevented clients from withdrawing their money.

When client’s attempted to remove funds from their trading accounts, they were told that withdrawals could only be made if they submitted photo ID, a utility bill and a debit or credit card. This degree of information, however, was not asked for when they accepted the original clients’ deposits.

It was also reported that when clients’ tried to withdrawal money that hadn’t been actively traded with, this would be declined.

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We add value by our legal services by guiding clients as to how best companies can be rescued and turned around and how debts can be written off or restructured. We can advise on administration or proposals of either Company Voluntary Arrangements (CVAs) (as Travelodge have recently done) or Partnership and Individual Voluntary Arrangements (PVAs or IVAs). To achieve a company rescue you must act quickly; contact us as soon as possible. The more time available to build an alternative business plan, the more successful it is likely to be. If your company can be saved, whether this is achievable through restructuring or writing off debts, the team can help by offering clear, practical and easy to understand advice which deciphers the Insolvency Rules and regime.

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We provide a no cost initial case review to establish whether or not we can help you. We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inns of Court adjacent to the Royal Courts of Justice.  We are experts in dealing with matters surrounding insolvency in particular issues.  Our team have unparalleled experience at serving statutory demands, negotiating with debtors/creditors, setting aside statutory demands and both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.

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