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UK High Court Forces Two Companies to Close Due to Potential Crypto Scam

On Friday, August 26th, the British government announced it was shutting down two related companies due to a possible crypto scam. The two firms hit are Micasa WW Ltd and Remultex Ltd.

Why is the UK Government Liquidating Micasa and Remultex?

According to the press release, Micasa failed to provide adequate justification for several large transactions it made. An investigation identified that the company secured a £50,000 Bounce Back Loan but couldn’t prove it really qualified for one.

The post continues to explain that almost this entire sum was transferred to a firm called Remultex. Furthermore, Remultex secured its own £30,000 Bounce Back Loan and received payments totaling £250,000 from three other companies. Allegedly, most of this money was withdrawn from the business in cash.

Both companies are said to have failed to provide justification, an adequate explanation, or a paper trail detailing why they made these transactions and how they qualified for the Government loans. Therefore, the High Court ordered the liquidation of both companies.

The post also stated that Micasa “had been identified as potentially involved in a cryptocurrency scam, although the lack of accounting records meant it was not possible to verify whether its business was legitimate trading activity.”

The Year of Crypto Controversies

With the growing popularity of cryptocurrencies attracting the attention of SEC chairman Gary Gensler, and his colleagues around the world, 2022 has seen much litigation, regulation, and even arrests aimed at the industry. Probably the most notable case this year so far has been the sanctioning of the crypto mixer Tornado Cash.

Other countries have also been ramping up their efforts when it comes to combating crypto-related crime. Recently, countries like India, Singapore, and South Korea have taken action to regulate crypto and prevent fraudulent and money-laundering activity. The US DoJ is also getting involved with the most recent example being the arrest of a Miami-based trio accused of defrauding multiple banks and a crypto exchange.

Not all government attention has been in the form of stopping crypto-related crime. Japan recently started an initiative to reform its taxation policy in order to facilitate the growth of crypto-related businesses. Furthermore, Britain is considering a reform in its property law which might recognize crypto as its own category.

This article originally appeared on The Tokenist

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