GPay Ltd was wound up in the public interest on 23 June 2020 in the High Court before Deputy Judge Baister, according to an official announcement by the Insolvency Service. The Official Receiver has been appointed as liquidator of the company.
In considering the petition, the court heard that GPay facilitated an online cryptocurrency trading platform supported by experienced traders and innovative tools that enabled people with no experience to conduct trades.
The company, which traded as XtraderFX and formerly as Cryptopoint, targeted people in the UK and abroad, advertising its services online and via social media channels, the announcement said.
Customers were encouraged to use GPay’s online trading platform through advertisements that falsely claimed the service was supported or endorsed by entrepreneurs that starred in a prime-time TV show and a high-profile money saving website.
Following complaints, however, the Insolvency Service conducted confidential enquiries into GPay’s activities before investigators uncovered that at least 108 clients claimed they had lost in total just under £1.5 million while using the company’s online trading platform.
In some cases, clients lost money despite paying insurance, which was meant to retrospectively cover their losses.
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If clients attempted to remove funds from their trading accounts, they were advised that no withdrawals could be made until they submitted copies of their photo ID, a utility bill, and debit or credit card. This level of information, however, was not asked by GPay when they accepted clients’ deposits.
Clients also reported that withdrawals would be declined if they hadn’t actively traded the deposited funds.
A lack of commercial probity
GPay did not defend the public interest petition, and in winding-up the company, the court concluded that the company demonstrated a lack of commercial probity, failed to file statutory accounts, and had no legitimate presence at its registered office address, which GPay appeared to have abandoned.
David Hill, a chief investigator for the insolvency service, said that 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 into using their online platform under false pretenses, and no customer has benefited as their investments have been lost,” he noted.
“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,” Hill concluded.