The UK government’s Insolvency Service has shut down a crypto advisory firm for accounting negligence and the loss of investors’ money. The firm seemingly claimed to help users with investments while promoting crypto schemes that resulted in millions lost.
False Crypto Expert Company Shut Down
On Monday, The UK’s government published a press release unveiling a web of lies weaved by Amey Finance Academy Ltd. Amey Finance was “an established and successful independent consultancy providing a plethora of financial services.”
The crypto advice company claimed to run an “industry-leading education academy” that guides customers through investment opportunities and teaches them about crypto.
Instead, the company promoted scheme projects, resulting in the loss of investors’ money. On April 30, the UK’s Insolvency Services obtained a winding-up order from the High Court in London.
In 2018, Desmond Amey created Amey Finance Academy to “offer financial advice and education on cryptocurrencies.” Amey was the London-based company’s sole director and shareholder and considered himself a “wealth creation expert.”
The director assured customers that their crypto investments “were solid.” However, investors informed authorities that they lost money in the opportunities offered by the firm.
Despite claiming to have the required licensing from the Financial Conduct Authority (FCA), it was revealed that the company was operating without authorization. In 2022, the FCA informed investors that Amey Finance Academy offered financial services and products as an unregistered company.
According to Mark George, the Insolvency Service’s Chief Investigator, Amey used the company “to recklessly persuade individuals to invest in cryptocurrency schemes and mislead them about the risks of doing so.”
The Chief Investigator revealed that the firm failed to deliver up-to-date accounts during the investigation. As a result, the Insolvency Services couldn’t establish the full extent of Amey Finance’s activities.
Despite the lack of transparency, the agency determined that at least £5 million passed through the company’s bank accounts between 2019 and 2022:
The failure to deliver adequate accounting records and a general lack of transparency shown has prevented the Insolvency Service from establishing the true extent of the company’s activities, its assets and liabilities, or the use of £5 million which passed through the company’s bank account between October 2019 and March 2022.
‘Trust Me Bro’ Director Promotes Schemes
According to the press release, Amey misrepresented the investment opportunities he offered. He assured customers their investments would not “drop below 90%” before losing all their money.
The investigation revealed that Amey Finance promoted crypto schemes run by other companies. Among these schemes, the firm endorsed companies like HyperFund, which raised $1.7 billion worldwide.
HyperFund raised the alarm of regulatory entities in the UK and New Zealand, who issued customer warnings against the company. The US Securities and Exchange Commission investigated the company, ultimately charging its founder with fraud in January 2024.
The director’s contradictory statements prevent Insolvency Services from unveiling the true relationship between Amey Finance and HyperFund. However, Amey claimed he only used his firm’s bank account to “help people buy cryptocurrency via a separate company called Bleuguava.”
During the investigation, the Insolvency Services had access to some messages from the director. Amey had told customers that the crypto investments were “100 certy” and asked investors to “trust me bro.”
Further investigations showed that the director’s email signature stated he was the Managing Director of Amey Commercial Finance Ltd, a company dissolved in 2017. In 2023, he had been evicted from the company’s address in London despite claiming to still have a presence there.
Ultimately, Amey’s web of lies resulted in the loss of millions for the investors and his company’s shutdown and future liquidation.
Total crypto market capitalization is at $2.2 trillion in the three-day chart. Source: TOTAL on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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