UK Shuts Down Crypto Firm for Providing Poor Advice to Clients

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Key takeaways:

  • Authorities in the UK have officially closed a crypto academy, alleging its founder used it to “recklessly persuade” people to participate in risky ventures.
  • Several clients lost all of their money due to deceptive claims made by the company’s lone shareholder and director.

Authorities in the United Kingdom have officially closed a crypto academy, alleging its founder used it to “recklessly persuade” people to participate in risky ventures, such as a purported $1.7 billion crypto “Ponzi” scheme.

The Insolvency Service, a government agency in the United Kingdom, claims that Amey Finance Academy provided guidance to investors in different cryptocurrency schemes. 

Conversely, several clients lost all of their money due to deceptive claims made by the company’s lone shareholder and director.

Amey allegedly informed a customer in WhatsApp communications that were viewed by investigators that their investments were a “100 certy” and to “trust me bro.”

Another customer allegedly lost everything despite Amey’s assurance that their investment wouldn’t drop below 90%. Chief Investigator Mark George of the Insolvency Service stated:

“Desmond Amey used Amey Finance Academy to recklessly persuade individuals to invest in cryptocurrency schemes and mislead them about the risks of doing so,”

It happened two weeks after Amey’s company was the subject of a winding-up order obtained by the Insolvency Service on April 30 in the U.K. High Court.

One of the cryptocurrency schemes that the company advertised was HyperFund, which subsequently changed its name to HyperVerse. HyperFund was a purported Ponzi scheme that eluded Australian authorities for almost two years.

The US Securities Commission has since prosecuted two of HyperVerse’s principal operators, alleging the company ran a $1.7 billion fraud operation.

Unfortunately, due to Amey’s refusal to supply current accounting documents, the Insolvency Service was unable to determine the actual nature of the partnership between HyperVerse and Amey Finance Academy.

According to George, the Insolvency Service was forced to pursue a wind-up order due to the lack of openness.

The assets and liabilities of Amey Finance Academy could not be determined, although approximately $6.3 million (5 million Great Britain pounds) passed through the company’s bank account between October 2019 and March 2022.

Amey’s firm made its debut in December 2018 as an established and prosperous independent consultancy offering a wide range of financial services.

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