Two companies were recently shutdown by the UK government, as they were suspected of engaging in crypto fraud.
According to the government, they had conducted an investigation into the two companies and discovered that they had been involved in fraud using their accounts, which was around £1.3 million.
The United Kingdom published a press release in which it announced that it was shutting down Remultex Ltd. and Micasa WW Ltd.
According to the government, the two firms had not been able to provide details regarding the massive transfers they had conducted.
Therefore, the High Court had no other choice but to order the liquidation of the two companies and their accounts were to be shut down because there is no accountability.
The press release further added that not only had the two companies failed to provide an explanation for the large payments, but had also misused the Bounce Back Loans.
Those who were in charge of the investigations had found that the two companies had transferred a bounce back loan worth £50,000.
However, there had not been a record to show that the two companies were compliant when they made the transfer.
According to the investigators, it was highly likely that the two companies were engaged in a crypto scam.
But, the fact that the two firms lacked financial records made it difficult to verify the legitimacy of the businesses.
Nevertheless, the investigators were able to verify the Bounce Back Loan worth £50,000 that Remultex had received, but there was no evidence to suggest that it was eligible for it under the rules of the scheme.
A Manchester High Court judge stated that it was in the best interest of the public that the two companies be shut down.
According to the judge, the two companies had been in violation of trade policies and they lacked a commercial ‘probity’, but continued to operate, thereby leading to illegal transfers of money.
David Hope, the Insolvency Service’s chief investigator, said that they would take action for recovering the company’s assets in order to provide compensation to the creditors.
In the last couple of years, crypto adoption all over the globe has skyrocketed, but this growth has also brought a rise in crimes associated with cryptocurrency as well.
Law enforcement authorities have been actively working in identifying crypto scams and frauds and are taking measures for curbing these criminal activities to provide maximum protection to investors.
A recent report from Chainalysis had disclosed that almost $10 billion worth of funds had been stolen in 2020 from the crypto sector.
The crypto market had seen a rise in growth in 2021 and this had also resulted in an increase in the criminal activities.
Therefore, this figure had reached a whopping $14 billion. This year has also seen a rise in crypto exploits, with decentralized finance (DeFi) protocols becoming a popular target.
In fact, even the FBI has recently issued a warning about the rise in crypto-related criminal activities.