GPay Limited, a company that operated as XtraderFX (formerly CryptoPoint) was closed by the British authorities following investigations into its commercial and service practices.
The company has been on the British FCA's radar (the equivalent of our Consob) for over two years and, at the end of this long process, the company was forced to close its doors last week. The reason is well explained in the sentence with which the adventures ofexchange, which emphasizes how this company was targeting UK clients with regulated businesses requiring an authorization. Which, of course, GPay didn't have.
Investigators found that at least 108 people lost around £ 1,5 million in total, as a result of using the unregulated online cryptocurrency trading platform. But where did the investigation come from?
According to the reconstruction carried out, users became suspicious when asked to send copies of their identity document with photos, a utility bill and a debit / credit card, following a withdrawal request. Although this is an industry standard practice, especially from exchanges, checks are usually made at the time of enrollment.
David Hill, Chief Investigator, said the GPay-managed exchange was a scam. With this, Hill stressed the importance of conducting adequate checks on any trading platform, especially when large sums of money are involved.
As is unfortunately the case with many similar projects, the XtraderFX trading platform had used social media ads to attract novice traders who were looking to get rich quickly. The elements of the scam were all there: the presence of well-known characters whose faces were used artificially to suggest that various celebrities were involved in the program, false promises, various opacities and much, much more.