• 168 companies accused of crypto and forex scams in the U.K. have been identified by the Bureau of Investigative Journalism (TBIJ).
• Victims have lost approximately $3.4 million (£2.8 million) in the U.K., the U.S., Canada, Turkey, Germany, and Poland.
• The U.K. government has pledged to introduce a requirement to verify information provided to Companies House to more effectively combat the fraudulent activities.
The Bureau of Investigative Journalism (TBIJ) has uncovered an alarming number of companies running fraudulent crypto and forex trading operations in the U.K. The report revealed that 168 companies across the country are accused of running scams related to cryptocurrency and forex trading. These companies are registered to London addresses and have at least one Chinese director.
Victims of these scams have been conned out of a staggering $3.4 million (£2.8 million) across the U.K., the U.S., Canada, Turkey, Germany, and Poland. These victims are often approached on social media, dating websites, and Whatsapp to invest in crypto trading platforms. The TBIJ report indicates that 17 of the companies identified are “pig-butchering” scams.
The U.K. government has acknowledged the need to address this issue and has promised to introduce a requirement to verify information provided to Companies House. However, financial crime investigator Graham Barrow warned that this legislation could still pose “significant loopholes” — including ambiguity surrounding ID verification. The U.K.’s company registration system has been identified as a major contributor to the scam due to its reputation for being a trustworthy location.
The U.K. government must take immediate action to prevent further fraudulent activities from taking place. In addition to introducing a requirement to verify information provided to Companies House, the government should also look into creating a regulatory framework that specifically addresses crypto and forex trading scams. This would ensure that victims are not only protected, but that perpetrators of fraudulent activities are held accountable for their actions.
The U.K. is home to hundreds of companies running crypto and forex scams that have cost victims across the globe millions of dollars. It is essential for the U.K. government to introduce a regulatory framework that provides individuals with the necessary protection from these fraudulent activities. Without such measures, more people will fall victim to these scams and suffer severe financial losses.