The UK government’s Insolvency Service has shut down a London-based crypto advisory firm that claimed to offer investment advice in cryptocurrencies. Amey Finance Academy Ltd was ordered to close by a London High Court ruling on April 30, with the company’s owner Desmond Amey allegedly assuring customers that their cryptocurrency investments were safe, despite customers allegedly losing money in their investments. The lack of positive returns raised red flags, leading to the Financial Conduct Authority (FCA) stepping in and identifying Amey Finance Academy as an unauthorized provider of financial services or products in the UK.
Established in Dec. 2018, Amey Finance Academy advertised itself on social media as an established and successful consultancy providing financial services, and claimed to operate a leading education academy within the industry. However, founder Desmond Amey made false promises to customers, guaranteeing that their investments would not fall below 90% and assuring that the investments were secure. The firm also promoted crypto schemes conducted by other firms such as HyperFund, which raised over $1.7 billion from investors globally. Amey did not return requests for comment after the ruling to shut down the firm.
An investigation by the Insolvency Service revealed that Amey had posted a video on YouTube in Oct. 2023, suggesting that the office still maintained a presence at 1 Canada Square in Canary Wharf, London, despite being evicted earlier that year in January due to rent non-payment. Chief investigator Mark George mentioned that the service was unable to determine the full activities, assets, and liabilities of Amey Finance Academy, as well as the handling of £5 million from Oct. 2019 to March 2022 due to insufficient accounting records and lack of transparency. George stated that the public deserves protection from companies that trade in an opaque and objectionable manner, which is why they applied to have Amey Finance Academy shut down.
Earlier this year, the UK’s National Fraud Intelligence Bureau (NFIB) took down 43 websites suspected of crypto phishing scams and uncovered a fake email address designed to trick Blockchain.com customers. This spoofed address aimed to exploit security weaknesses and steal cryptocurrency. The NFIB’s investigation highlights the prevalence of fraudulent activities in the cryptocurrency industry, and the need for regulatory bodies to protect consumers from such scams. The closure of Amey Finance Academy serves as a cautionary tale for investors to conduct thorough research and due diligence before engaging with any crypto advisory firms or investment opportunities.
In light of the shutdown of Amey Finance Academy and the ongoing efforts to combat crypto scams and fraudulent activities in the UK, it is essential for investors to exercise caution and skepticism when dealing with cryptocurrency investments. Regulatory bodies such as the FCA and the Insolvency Service play a crucial role in protecting consumers from deceptive practices and ensuring the integrity of the financial market. The case of Amey Finance Academy serves as a reminder of the risks associated with investing in cryptocurrencies and the importance of conducting thorough research and seeking advice from reputable sources before making any investment decisions in the digital asset space. By staying informed and vigilant, investors can safeguard themselves against potential scams and fraudulent schemes in the cryptocurrency market.
