A UK court has ordered the liquidation of Key Coin Assets Ltd, a cryptocurrency investment firm that promised investors returns of 40% to 100%, after investigators found the operation showed classic signs of a Ponzi scheme. The UK Insolvency Service, which brought the case, said there was no evidence that the company ever engaged in actual cryptocurrency trading, despite raising substantial funds from investors.
Investigation Reveals Fraudulent Operations
According to the Insolvency Service, nine investors who reported losses had collectively invested more than £300,000 (approximately $379,000). Investigators found that returns paid to existing investors were funded by money from new investors—a hallmark of Ponzi fraud. Furthermore,…