UK Court Orders Liquidation of Crypto Firm Accused of Running Ponzi Scheme

A UK court has ordered the liquidation of Key Coin Assets Ltd, a cryptocurrency investment firm accused of running a Ponzi scheme. The company promised investors returns of 40% to 100%, but investigators found no evidence it ever engaged in actual cryptocurrency trading.

Nine investors reported losses totaling over £300,000 (approximately $379,000), with returns paid to existing investors funded by money from new investors. Funds deposited by investors were largely transferred to a company executive's personal bank account on the same day they were received.

The UK Insolvency Service brought the case and says the liquidation marks 'a formal end' to Key Coin Assets Ltd's operations, allowing for the appointment of an official liquidator to recover assets and investigate further.