The U.K. High Court has frozen the assets of a British cryptocurrency firm on charges of swindling investors out of more than $700,00. Plaintiff PGI Global U.K. Ltd promised buyers of platform assets a 200% return on their money.
Unfortunately, the company couldn’t even afford to return the whole amount that investors had put into it. Through their investigation, the authorities found that the receiver accounts had diverted over $225,000 to personal accounts and spent over $11,500 on opulent goods online.
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Over the past few years, the cryptocurrency market has gained notoriety and widespread adoption, with major financial institutions around the world finding crypto to be a valuable new tool in their financial toolkit.
With the booming cryptocurrency market, fraudsters and con artists have unfortunately upped their game to trick unsuspecting victims out of their cryptocurrency. As a result, authorities have been making headlines nearly daily for cracking down on unscrupulous actors in the crypto industry, as a direct result of the increasing frauds in the sector.
Praetorian Group International Trading, Inc., of which PGI Global U.K. Ltd is a subsidiary, is widely known. Moreover, the United States Treasury Department website was taken offline the previous month.
Following the issuance of a seizure warrant by the U.S. District Court for the Eastern District of Virginia, the agency moved to halt the unregistered business’ online activity. It was the company’s mission to serve as an information resource on blockchain technology while also providing trade packages and health-related products.
Ramil Ventura Palafox, a man from the Philippines, is officially PGI Global’s only director. The U.S.-based fraud scheme’s operator had ignored the Insolvency Service’s demands before the court finally shut it down.
The PGI Global Statutory Inquiry Ended in Defeat
According to Mark George, chief investigator at Insolvency Service, who commented on the court’s decision to liquidate the company for lack of openness,
This case shows that the court will take a poor view of a company’s refusal to comply with a statutory enquiry and will wind it up in the public interest if there are reasonable concerns about the company’s trading practices.
After the company failed to produce required accounting records and comply with the court’s order to file for bankruptcy, the highest court in the United Kingdom opted to dissolve it.
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It is in the “public interest” to seize PGI Global. Officials also warned that similar repercussions from law enforcement will be felt by any other businesses operating under the system that do not adhere to the regulation and fail to maintain openness.
Mark George noted;
Companies and individuals who benefit from limited liability must therefore adhere to the rules established by the Companies Act.
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