The UK High Court has appointed the Official Receiver as liquidator of the cryptocurrency trading platform, GPay Ltd.


According to an announcement published by the UK Insolvency Service on June 30, the crypto exchange showed signs of being "nothing but a scam”.


Fake statements abound



The
firm, also known previously as XtraderFX and Cryptopoint, advertised
its services online and through social media channels. The Insolvency
Service claims that the ads falsely alleged the service was endorsed by
entrepreneurs who appeared in an unnamed UK primetime TV show and a
high-profile money saving website.


After complaints
received by the local authorities, the Insolvency Service proceeded with
confidential inquiries into GPay's activities. These revealed that at
least 108 clients claimed to have lost around £1.5 million ($1.84
million) while trading on the platform.


GPay allegedly a “scam”



David Hill, a chief investigator for the UK Insolvency Service, commented:



"GPay
persuaded customers to part with substantial sums of money to invest in
cryptocurrency trading. This was nothing but a scam as GPay tricked
their clients to use their online platform under false pretences and no
customer has benefited as their investments have been lost."



The
Court also received reports that clients were denied withdrawal
requests if they had not actively traded their deposited funds within
GPay.


GPay's case concluded on June 23, 2020 with a
petition presented by the Secretary of State for Business, Energy and
Industrial Strategy, or BEIS.


Recently, the United Kingdom Advertising Standards Authority, or ASA, and the Internet Advertising Bureau, or IAB, launched a new system to detect and remove fraudulent online ads.

Cointelegraph also reported
in 2019 that the primary financial regulator of the United Kingdom, the
Financial Conduct Authority, or FCA, claimed that crypto investors in
the country lost over $34 million due to cryptocurrency and forex scams
between 2018–2019.