The end of June was full of scams and and the beginning of July is shady as well. What started with the Wirecard insolvency and a huge scandal involving a 3.2 billions Euro debts owed to their creditors was continued with a scam targeting Stellar holders and four attacks on the DeFi platform Balancer with half million dollars drained from multi-token pools.
The newest scandal comes from the United Kingdom, where the cryptocurrency trading firm Gpay Ltd was shut down by the High Court. Naive customers were convinced to use GPay through false advertise. When users attempted to remove funds from their trading accounts, they couldn't until they submitted copies of their photo ID, a utility bill and debit or credit card, even if this level of information was not asked when they made deposits. The investigation started confidentially, and uncovered that over 100 clients lost approximately £1.5 million while using GPay.
During the investigation, GPay did not defend and had no legitimate presence at its registered office address, which appeared to have been abandoned.
GPay was allegedly the brainchild of a group of criminals largely based in Israel including Gal Barak, Karsten Uwe Lenhoff, Marina Andreeva, Amit Hulin, Kfir Levy, Jesse Tally, and Itzik Gellet who conceived, designed, built, operated and ripped off hundreds of investors operating a variety of huge broker scams including GPay Ltd, XTraderFX, SafeMarkets, Golden Markets, CryptoPoint, OptionStars accumulating over 66 million Euro from investors across Europe.
GPay persuaded customers to part with substantial sums of money to invest in cryptocurrency trading. This was nothing but a scam as GPay tricked their clients to use their online platform under false pretences and no customer has benefited as their investments have been lost.
We welcome the court’s decision to wind-up GPay as it will protect anyone else becoming a victim. This scam should also serve as a warning to anyone who conducts trading online that they should carry out appropriate checks before they invest any money that the company is registered and regulated by the appropriate authorities. - Deputy Judge Baister
This will add another black chapter to the crypto-market book, and will fuel those who are skeptical against the advantages of cryptocurrencies. The moral of the story is simple... if something looks to good to be true, than is not true!
Links and referrals:
My author page: PV Mihalache
Join Publish0x to earn crypto (Dai, BAT & Loopring) while you read or write!
* If you decide to join any, please consider using my referral link