A London court has shut down crypto firm Key Coin Assets Ltd after nine investors who reported their concerns to Action Fraud paid the company more than £300,000 between them.
An investigation by the Insolvency Service found no evidence that the firm carried out the cryptocurrency trading it advertised. Investigators said the company’s activities displayed the hallmarks of a Ponzi-style scheme, in which money from newer investors appears to be used to pay earlier participants.
The UK government announced on 18 August that the company had been wound up by a London court a week earlier. The Insolvency Service, the government agency responsible for investigating corporate misconduct and insolvency, said Key Coin Assets had not provided evidence of genuine trading during its inquiry.
Key Coin Assets told prospective customers it could guarantee returns of between 40% and 100%. One online promotion advertised the opportunity with the words: “0 Fees, 0 Risks.”
Bank records reviewed by investigators showed that customer funds were frequently moved into the company director’s personal account within hours of being received, and sometimes on the same day. The money subsequently became difficult to trace.
The Insolvency Service also requested accounting records, but those documents were not supplied during the investigation.
The company changed its registered address several times. One address was a flat whose occupants said they had never heard of Key Coin Assets. Filings made at Companies House claimed the firm had assets worth as much as £42m, although investigators said the company’s banking activity indicated a much lower level of financial activity.
Online testimonials attributed to customers were also published without the permission of the people named. Investors were told not to use words such as “crypto” or “investment” in bank transfer references.
The Financial Conduct Authority added Key Coin Assets to its list of unauthorised firms on 12 September 2024, almost two years before the court order. The FCA said the company was not authorised and might be targeting UK consumers.
People who deal with an unauthorised firm are not protected by the Financial Ombudsman Service, which considers complaints against financial businesses. They are also excluded from the Financial Services Compensation Scheme, which may compensate customers if an authorised firm fails.
The Insolvency Service and the FCA have urged anyone considering a crypto investment to check the business through the FCA’s Firm Checker and its list of unauthorised firms.
They identified guaranteed high returns, requests to leave standard payment references off bank transfers and pressure to recruit other investors as warning signs. Advertising unusually large returns alongside little or no apparent risk is also a common indicator of a crypto scam.
Investigators said that combination was present in material used by Key Coin Assets to attract customers.
The Official Receiver, the government official responsible for dealing with companies wound up by the courts, has been appointed liquidator of Key Coin Assets following the High Court order.
Fraud against individuals and businesses cost the UK economy £14.4bn in 2023-24, according to the government’s 2026-2029 Fraud Strategy. The strategy describes fraud as the country’s largest crime type and commits more than £250m between 2026 and 2029 to tackling it.
The FCA has also increased enforcement activity elsewhere in the crypto sector. In April, it raided eight premises linked to suspected illegal peer-to-peer crypto trading. The operation was the regulator’s first coordinated enforcement action of that kind and led to cease-and-desist letters while authorities investigated possible unlawful activity.
The UK’s wider crypto regulatory regime remains more than a year away. Under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, firms conducting regulated crypto asset activities will be supervised by the FCA in a similar way to banks and brokers.
The regulations were finalised in February 2026, according to an HM Treasury policy note. The final framework covers businesses including exchanges, custodians, staking providers and lenders.
The UK’s final crypto rulebook sets 25 October 2027 as the date when the framework takes effect. Firms will be able to apply for authorisation from 30 September 2026, creating a transition period before the broader rules come into force.
Separately, UK lawmakers began an inquiry in July into access to banking services for crypto companies. The Crypto and Digital Assets All-Party Parliamentary Group is examining whether banks are cutting off legitimate businesses. It wrote to senior executives at major banks on 11 August and is collecting evidence until 31 August.
HM Revenue and Customs sent 81,000 warning letters to cryptocurrency investors over suspected unpaid taxes, while expanded international reporting…
