Crypto scam is a pain in the neck for governments around the globe. It involves a huge amount of money and as technology advances, so do the tricks fraudsters employ behind the scheme.

British authorities have ordered the shutdown of two companies involved in a crypto-related fraud. An investigation into the two firms revealed that their accounts were used in a £1.3 million crypto scam, authorities said.

Micasa had approximately £1.3 million flow through its accounts between February 2019, when it began operations, and December 2020, according to a probe by the Insolvency Service.

“Micasa and its affiliated company, Remultex, have been compelled to cease operations after huge payments and misuse of Bounce Back Loans went unexplained,” the press announcement stated in part.

Court Springs Into Action Vs. Crypto Scam

The Manchester High Court judge ruled that closing the companies engaged in the crypto scam was necessary to protect the public.

According to the judgment, the companies breached trade laws and were operating without commercial “probity,” resulting in illicit money transfers.

David Hope, the Insolvency Service’s chief investigator, reacted on the action, stating that steps would be taken to collect and liquidate the company’s assets and return them to the creditors.

Remultex received payments from three more firms totaling roughly £250,000 by December 2020, on top of the Bounce Back Loan money obtained from Micasa.

The adoption of cryptocurrencies has increased exponentially during the past year. Despite this quick expansion, there has been an upsurge in criminal activity associated with the bitcoin industry.

Crypto Scam Nets $14 Billion

Utilization of cryptocurrencies is expanding quicker than ever before. In 2021, the overall transaction volume of all cryptocurrencies tracked by Chainalysis increased by 567 percent to $15.8 trillion, compared to figures from 2020.

Fortune reported in January of this year that in 2021, criminals involved in crypto scam stole a record-breaking $14 billion in cryptocurrencies, representing a nearly 80% rise over the previous year.

Last year, transactions employing unlawful addresses accounted for only 0.15 percent of total cryptocurrency transaction volume, according to Chainalysis, despite the value of criminal transaction volume reaching an all-time high.

Measures have been taken by law enforcement agencies to combat these illegal activities and safeguard the safety of investors in the UK.

Meanwhile, Hong Kong is among the nations with the greatest number of crypto aficionados.

According to the most recent reports, the number of crypto frauds in the bustling financial district surged considerably this year. Approximately a quarter of these frauds include crypto assets.

Crypto total market cap at $943 trillion on the daily chart | Source: TradingView.com

Featured image from Money, chart from TradingView.com