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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