The UK government’s Insolvency Service has taken action against a London-based crypto advisory firm, Amey Finance Academy Ltd, which claimed to offer investment advice in cryptocurrencies. The firm’s owner, Desmond Amey, assured customers that their investments were safe but customers allegedly lost money, prompting the Financial Conduct Authority to step in and shut down the company. Amey Finance Academy was found to be an unauthorized provider of financial services in the UK, leading to its closure by court order.
Established in December 2018, Amey Finance Academy falsely advertised itself as an established consultancy providing financial services and operated an education academy within the industry. The company made false promises to customers, guaranteeing returns that were not delivered and promoting crypto schemes conducted by other firms that raised significant sums from investors globally. Desmond Amey assured customers through messages on WhatsApp that their investments were safe, despite evidence to the contrary.
An investigation by the Insolvency Service revealed that Desmond Amey used deceptive practices to persuade individuals to invest in crypto schemes and misled them about the risks involved. The company’s lack of transparency and accounting records made it impossible to determine its full activities, assets, and liabilities. Additionally, Amey falsely claimed to still have an office in Canary Wharf, London, while he had been evicted earlier in the year for non-payment of rent, adding further evidence of deceptive practices.
Mark George, the chief investigator at the Insolvency Service, highlighted the need for protection of the public from companies that trade in an opaque and deceptive manner. As a result, the decision was made to shut down Amey Finance Academy to prevent further harm to investors. The investigation into the firm’s activities and handling of funds from 2019 to 2022 revealed significant discrepancies and lack of proper accounting practices, underscoring the need for regulatory intervention to protect consumers from fraudulent schemes.
In a separate incident earlier in the year, the UK’s National Fraud Intelligence Bureau (NFIB) took down 43 websites suspected of engaging in crypto phishing scams. The investigation revealed a fake email address designed to trick Blockchain.com customers into revealing sensitive information, highlighting the prevalence of fraudulent activities in the crypto space. The NFIB’s actions underscore the importance of regulatory oversight and enforcement to combat scams and protect investors from financial loss.
Overall, the case of Amey Finance Academy highlights the risks associated with investing in cryptocurrencies and the importance of due diligence when choosing financial advisors. The regulatory actions taken by the UK government’s Insolvency Service and the NFIB are crucial in protecting consumers from fraudulent schemes and ensuring the integrity of the financial services industry. Investors are urged to exercise caution and skepticism when approached by firms promising high returns with minimal risk, and to report suspicious activities to authorities to prevent further harm.
