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UK crypto firm shuts down after losses of £5m in investors’ money
The UK government’s Insolvency Service has shut down a crypto consultancy firm over accounting negligence and loss of investors’ money. The company apparently claimed to help users with their investments while promoting crypto schemes that resulted in millions in losses.
Fake crypto expert company shut down
On Monday, the British government published a press release revealing a web of lies woven by Amey Finance Academy Ltd. Amey Finance was “an established and successful independent consultancy providing a plethora of financial services”.
The crypto consulting firm claims to run a “cutting edge education academy” that guides clients through investment opportunities and teaches them about crypto.
Instead, the company promoted scheme projects, resulting in a loss of investors’ money. On April 30, the UK Insolvency Service obtained a liquidation order from the High Court in London.
In 2018, Desmond Amey established the Amey Finance Academy to “provide financial advice and education on cryptocurrencies.” Amey was the sole director and shareholder of the London-based company and considered himself an “expert in wealth creation”.
The director assured clients that their crypto investments “were solid.” However, investors informed the authorities that they had lost money thanks to the opportunities offered by the company.
Despite claiming to hold the required license from the Financial Conduct Authority (FCA), the company was revealed to be operating without authorization. In 2022, the FCA informed investors that Amey Finance Academy was offering financial services and products as an unregistered company.
According to Mark George, the Insolvency Service’s chief investigator, Amey used the company “to recklessly persuade individuals to invest in cryptocurrency schemes and mislead them about the risks associated with doing so.”
The chief investigator revealed that the company failed to provide updated accounts during the investigation. As a result, the insolvency services were unable to establish the full extent of Amey Finance’s activities.
Despite the lack of transparency, the agency determined that at least £5 million passed through the company’s bank accounts between 2019 and 2022:
The failure to provide adequate accounting documents and the general lack of transparency prevented the Insolvency Service from establishing the true extent of the company’s activities, its assets and liabilities, or the use of the €5 million. pounds sterling that passed through the company’s bank account between October 2019 and March 2022.
“Trust Me Bro” Director Promotes Projects
According to the press release, Amey misrepresented the investment opportunities it offered. He assured customers that their investments would not “go below 90%” before losing all their money.
The investigation revealed that Amey Finance promoted crypto schemes run by other companies. Among these programs, the company has backed companies like HyperFund, which have raised $1.7 billion globally.
HyperFund has raised the alarm with regulators in the UK and New Zealand, who have issued customer warnings against the company. The United States Securities and Exchange Commission investigation the company, ultimately accusing its founder of fraud in January 2024.
The director’s contradictory statements prevent Insolvency Services from revealing the true relationship between Amey Finance and HyperFund. However, Amey claimed he only used his company’s bank account to “help people buy cryptocurrency through a separate company called Bleuguava.”
During the investigation, the insolvency services had access to certain messages from the director. Amey had told customers that crypto investments were “100 sure” and asked investors to “trust me, bro.”
Further investigation showed that the director’s electronic signature indicated that he was the managing director of Amey Commercial Finance Ltd, a company dissolved in 2017. In 2023, he had been expelled from the company’s London address then that he claimed to always be present there.
Ultimately, Amey’s web of lies resulted in investors losing millions, as well as the closure and future liquidation of his company.
Total crypto market capitalization is at $2.2 trillion in the three-day chart. Source: TOTAL on TradingView
Featured image from Unsplash.com, chart from TradingView.com