UK High Court Shuts Down PGI Global for Involvement in a Crypto Fraud

The United Kingdom’s crackdown on cryptocurrency is still on fire as the government is continuously taking down any illicit acts associated with virtual assets. Recently, the United Kingdom High Court ordered PGI Global UK to shut down, following their non-compliance with the guidelines and links with possible involvement in a crypto fraud with their investors.

According to the UK government’s Insolvency Services press release, authorities have appointed their Official Receiver as the company liquidator. PGI Global received around 612,425 Pound Sterling (over 700K USD) in their bank accounts from their would-be investors. Over 10,000 USD were used for making a payment to a luxury store and over 226K USD were moved to their personal accounts.

The company’s major activities remain blockchain education, health products and more. They promised 200% return on investments but failed to deliver such. The investors were unable to withdraw the funds following their investment in PGI Global UK. The authorities believe that the firm was involved in buying and selling cryptocurrencies.

The UK High Court reached their verdict to shut down the company after concluding that the organization was unable to deliver accounting records, lacked cooperation and transparency, and failed to comply with the statutory obligations. Previously, the nation’s authorities implemented a ban on cryptocurrency advertisements in January 2022.

According to Mark George, Insolvency Services’ Chief Investigator, “Businesses and people falling under the limited liability need to comply with the Company Act.” He added that “They have reasonable concerns to take this action against PGI Global UK.” In August 2022, UK High Court went after another company Micasa WW Ltd. where the firm was allegedly involved in a crypto fraud.

On one hand, the crypto sector has offered a lot of profits to the investors in the past. Meanwhile, several investors have lost myriads of funds in the space in recent times. The Securities and Exchange Commission (SEC) labeled the space “Wild West” due to heavy volatility in the market.

Crypto Market Shows Signs of Recovery

Cryptocurrencies officially made their debut with Satoshi Nakatomo’s Bitcoin in January 2009. Currently, there are over 21,000 digital assets in the market according to CoinMarketCap data. The sector had a hard time following the LUNA ecosystem collapse but the market is now showing signs of recovery.

Ethereum has gained 25% in its value in a week, while Bitcoin is uptrending by 8%. The Overall market cap has again broken the 1 Trillion USD mark at the time of this publication.

Digital asset market is volatile and people need to be extremely aware while investing in a project, especially the new ones. One of the most famous cases remains the Squid Games crypto fraud in 2021 which showed a massive growth in its value by almost 100,000%, but went dry soon after the boom. The project creators went off the radar with investors’ funds as soon as they met their desired target.

Article Credit : https://www.thecoinrepublic.com/2022/10/29/uk-high-court-shuts-down-pgi-global-for-involvement-in-a-crypto-fraud/