UK closes crypto firm Key Coin Assets over alleged Ponzi scheme

UK High Court wound up Key Coin Assets Ltd on August 11 after the Insolvency Service acted against the London-based crypto investment firm. The company promised investors returns of between 40 and 100 per cent, advertising "0 Fees, 0 Risks," but investigators found no evidence of genuine cryptocurrency trading. Instead, money from new investors was used to pay earlier ones, a classic Ponzi‑style pattern, with funds often transferred to the director’s personal account the same day they arrived. Fake online testimonials were posted without permission, and investors were told to avoid words such as "crypto" or "investment" in bank payments to evade scrutiny.

For Nigerians, this case highlights the danger of offshore schemes that promise unrealistic returns. Many locals have lost money to similar scams, and recovering funds from abroad is extremely difficult. The Insolvency Service and the Financial Conduct Authority urge anyone considering crypto investments to check whether a firm is registered with the FCA and to treat guarantees of high or risk‑free returns with extreme scepticism.

Before sending money to any crypto investment promising high returns, will you verify its FCA registration and resist pressure to recruit others?

SOURCE: https://dailypost.ng/2026/08/19/uk-shuts-crypto-firm-over-alleged-ponzi-scheme/