UK court orders liquidation of crypto investment firm over Ponzi fraud

A UK court ordered the liquidation of Key Coin Assets Ltd, a crypto investment firm that raised money by guaranteeing returns of 40% to 100%, according to the UK Insolvency Service. Investigators found no evidence of actual cryptocurrency trading, while nine investors who reported losses had invested more than 300,000 pounds ($379,000) in total. Authorities also identified signs that returns were paid to existing investors using funds from new investors and concluded the scheme was a Ponzi fraud. The invested funds were largely transferred to a company executive’s personal account on the same day they were deposited. Separately, the UK plans to begin enforcing cryptocurrency regulations on Oct. 25, 2027.