U.K. High Court has seized a UK-based crypto company for allegedly defrauding investors’ funds of around £612,425 (more than $700,00). The defendant company, PGI Global U.K. Ltd, offered 200% returns to investors for buying platform assets.
And understandably, the company failed even to pay back the actual amount invested by people. The official’s probe into the company uncovered that the receiver accounts transferred around $225,500 to personal accounts and used more than $11,500 to purchase luxury items online.
The crypto industry has got famed in recent years and saw mainstream adoption, with global financial companies utilizing it as a useful financial instrument.
Unfortunately, seeing the crypto sector’s growth, scammers and fraudsters have also ramped up their efforts to deceive people and receive crypto funds. As a result, growing frauds in the crypto industry have turned law enforcement agencies on their toes, and that’s why authorities made headlines almost daily for cracking down on bad actors.
PGI Global U.K. Ltd is known to be a part of Praetorian Group International Trading Inc. Also, the U.S. Treasury Department closed its website the previous month.
The agency’s move to close the online activity of the unregistered firm comes after the U.S. District Court of the Eastern District of Virginia issued a seizure warrant. The company’s role as a service provider was to educate about blockchain and offer trading packages and health products.
A Philippine-born guy, Ramil Ventura Palafox, has been recognized as the only director behind PGI Global. The operator of the fraud scheme, which is located in the USA, failed to comply with the obligations of the Insolvency Service before the court ordered it to shut it down.
PGI Global Failed In Statutory Inquiry
Speaking on the court decision to close the company, which lacks transparency, chief investigator at Insolvency Service, Mark George, added in a statement;
This case highlights that where we have reasonable concerns about the trading practices of a company, the court will take a dim view of any failure to cooperate with a statutory enquiry and will wind up the company in the public interest.
The United Kingdom’s high court decided to shut down the company after it failed to meet its statutory obligations and didn’t cooperate with submitting accounting records.
The seizure of PGI Global comes in the “public interest”. In addition, officials noted that if any other firm operating in the regime does not follow the rule and fails to manage transparency, it will have to bear the same consequences by law enforcement authorities.
Mark George noted;
Individuals and businesses that operate under the protections afforded by limited liability are, as a consequence, required to comply with the requirements of the Companies Act.
Featured image from Pixabay and chart from TradingView.com
Source: https://bitcoinist.com/uk-high-court-seized-pgi-global-for-defrauding/