The UK High Court has ordered the winding-up of crypto investment company Key Coin Assets Ltd after investigators found no evidence that the business carried out the cryptocurrency trading it had promised investors.
The court issued the order on August 11, 2026. According to the Insolvency Service, nine people reported the company to Action Fraud after investing more than £300,000 between them.
Investigators concluded that customer funds did not appear to be used for genuine crypto trading. Instead, money from newer investors was allegedly used to support payments to earlier customers, a pattern consistent with a Ponzi-style scheme.
The company had promoted returns of between 40% and 100%, while its marketing presented the investment as carrying no fees or risk.
Customer funds moved to director’s personal account
Bank records became a key part of the investigation. Customer payments were frequently transferred to the company director’s personal bank account within hours of being received.
Investigators could not establish a clear trail showing that the funds had been used for the cryptocurrency activity promised to investors.
Other warning signs included the use of unauthorised customer testimonials and instructions telling investors to avoid terms such as “crypto” or “investment” when making bank transfers.
Key Coin Assets also failed to provide accounting records requested by investigators. Its registered address was changed several times, including to a flat whose occupants said they had no connection to the business.
Companies House records showed the company had reported assets of up to £42 million, but investigators said its banking activity did not support that figure.
FCA warning came nearly two years before closure
The UK Financial Conduct Authority (FCA) added Key Coin Assets to its list of unauthorised firms on September 12, 2024.
Because the company was unauthorised, investors did not have access to protections from the Financial Ombudsman Service or compensation through the Financial Services Compensation Scheme.
Following the court order, the Official Receiver has taken over the liquidation process.
UK authorities increase crypto enforcement
The case comes as UK authorities continue to target unauthorised activity in the crypto sector.
The FCA has carried out raids this year at eight locations linked to suspected illegal peer-to-peer crypto trading. The regulator is also directing prospective investors to its Firm Checker and register of unauthorised businesses.
New UK cryptoasset rules are scheduled to come into force on October 25, 2027, with firms able to begin applying for authorisation from September 30, 2026.
