The Insolvency Service of the UK government has closed down a cryptocurrency advisory company due to financial mismanagement and the misplacement of investors' funds. The firm purportedly offered investment assistance while endorsing crypto schemes that led to substantial losses for investors, amounting to millions of pounds.
False Crypto Expert Firm Closed
The UK government released a press statement on Monday exposing the deceitful network woven by Amey Finance Academy Ltd. "A well-known and prosperous independent consultancy offering a wide range of financial services" was Amey Finance.
The cryptocurrency advisory firm asserted that it operates a “industry-leading education academy” that instructs clients on cryptocurrency and walks them through investment opportunities.
Rather, the business pushed scheme initiatives, which caused investors' money to be lost. The London High Court issued a winding-up order to the UK's Insolvency Services on April 30.
As the only director and shareholder of the London-based Amey Finance Academy, which he founded in 2018 with the goal of "offering financial advice and education on cryptocurrencies," Amey regarded himself as a "wealth creation expert."
Customers were reassured by the director that their cryptocurrency investments "were solid," but investors reported to the authorities that they had lost money on the company's prospects.
It was discovered that the company was operating without authority, even though it claimed to have the necessary licensing from the Financial Conduct Authority (FCA). Investors were notified by the FCA in 2022 that Amey Finance Academy was operating as an unregistered business and providing financial services and products.
According to Mark George, the Chief Investigator at the Insolvency Service, Amey utilized its platform to irresponsibly encourage individuals to invest in cryptocurrency schemes, while also misleading them about the associated risks. During the investigation, it was discovered that the firm did not provide updated financial accounts, hindering the Insolvency Service's ability to fully comprehend Amey Finance's operations.
Despite the lack of transparency, it was determined that approximately £5 million flowed through the company's bank accounts from October 2019 to March 2022. This failure to maintain adequate financial records has impeded efforts to ascertain the company's complete activities, assets, liabilities, and the utilization of the aforementioned £5 million.
The director of "Trust Me Bro" advertises schemes
The press statement claimed that Amey had given false information about the investment options available. He guaranteed clients that they wouldn't lose all of their money if their assets "dropped below 90%."
The inquiry uncovered that Amey Finance advertised cryptocurrency plans managed by other businesses. The company supported businesses such as HyperFund, which raised $1.7 billion globally, as part of these initiatives.
Regulators in the UK and New Zealand were alarmed by HyperFund and warned its customers not to do business with them. After looking into the business, the US Securities and Exchange Commission accused the creator of fraud in January 2024.
The Insolvency Services encountered difficulty in uncovering the true nature of the relationship between Amey Finance and HyperFund due to contradictory statements from the director. While Amey asserted that his firm's bank account was solely used to facilitate cryptocurrency purchases through a separate entity called Bleuguava, investigations revealed conflicting evidence.
During the probe, Insolvency Services obtained messages from the director where he assured customers of the legitimacy of their crypto investments, using phrases like "100 certy" and urging them to "trust me bro."
Further inquiries unveiled discrepancies in the director's claims. His email signature indicated his role as the Managing Director of Amey Commercial Finance Ltd, a company that had been dissolved in 2017. Additionally, in 2023, he was evicted from Amey's purported address in London despite his claims of continued presence there.
Ultimately, Amey's deception led to substantial losses for investors, prompting the closure of his company and impending liquidation.
May 2024, Cryptoniteuae