GPay Crypto, a/k/a XtraderFX, Trading Platform Shut Down by High Court

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The online crypto trading firm, GPay Ltd, has been wound up in the interest of the public. This occurred on the 23rd of June, 2020, and was done before Deputy Judge Baister within the High Court. As it stands now, the Official Receiver, in this case, has now been appointed as the company’s liquidator, as well.

Claiming Endorsements That Never occurred

The online crypto trading company had falsely claimed that it had support from several high profile entrepreneurs. Now, however, the company has been wound-up, doing so only after it managed to lose a staggering £1.5 million in client funding, as a result.

The company had also traded under a different name, XtraderFX, and was formerly trading under the name of Cryptopoint. This firm managed to target investors from both abroad and within the UK,  doing so through advertisements done through social media channels.  Customers were urged to leverage the online trading platform GPay has through the fact that these advertisements falsely claimed that the service itself was supported or endorsed. In particular, these advertisements claimed that entrepreneurs starred in everything from high-profile money-saving websites to prime-time TV shows were the ones supporting and using these services.

General Bad Practices

However, things fell apart as the complaints rolled in, and the Insolvency services were quick to conduct confidential inquiries into the activities of GPay. It wasn’t long before investigators realized that a minimum of 108 clients claimed to have lost money while using the online trading platform. When you count it all up, these clients claimed to have lost an aggregate of just under £1.5 million. In some of these cases, the clients managed to lose money even after they paid insurance that was claimed would act as a means to retroactively cover these losses.

Should one of these clients try to remove funding from their accounts, they were informed that no such withdrawal was allowed until they submitted information. This information included a photo ID, debit or credit card, as well as a utility bill. However, this level of information wasn’t needed to put in a deposit, and GPay eagerly accepted deposits without any questions asked. Furthermore, if a client hasn’t actively traded with the deposited funds, requests to withdraw funds were summarily declined.

Jumping Ship

GPay didn’t even bother to defend the public interest petition, nor the winding-up of the company. The court concluded that the company had failed to file statutory accounts, showed a lack of commercial probity, and held no legitimate presence within its registered office address. It seems that GPay had abandoned the office following the case.

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