The UK government has officially closed Amey Finance Academy, a cryptocurrency advisory firm accused of engaging clients in risky investment schemes that led to significant losses. This action follows a winding-up order issued by the UK High Court on April 30, under allegations that the firm’s founder used deceptive tactics to persuade investors.
Details of the Closure
The Insolvency Service reports that Desmond Amey, the sole director and shareholder of Amey Finance Academy, provided investment advice that resulted in customers losing their entire investments. Notably, in communications such as WhatsApp messages, Amey reassured clients about the security of their investments with statements like “100 certy” and “trust me bro,” only for these investments to fail completely.
Misleading and Reckless Behavior
Amey Finance Academy was implicated in promoting schemes like HyperFund, later renamed HyperVerse, which is now recognized as a Ponzi scheme responsible for approximately $1.7 billion in fraudulent activities. Despite the charges against HyperVerse operators by the US securities regulator, the Insolvency Service was unable to definitively link Amey Finance Academy to HyperVerse due to a lack of proper accounting records from Amey’s firm.
Also Read: UK Treasury Highlights Cryptocurrency Risks in New Compliance Report
Financial Transactions and Insolvency Proceedings
From October 2019 to March 2022, around $6.3 million flowed through the firm’s bank accounts, yet the exact assets and liabilities remain unclear. The opaque nature of the firm’s operations and the misleading advice given to investors led the Insolvency Service to push for its closure to protect the public.
Mark George, chief investigator at the Insolvency Service, emphasized the need for transparency and integrity in the financial services sector, stating that the public deserves protection from firms operating in such a deceptive manner.
The closure of Amey Finance Academy serves as a stark reminder of the risks associated with unregulated investment advice, particularly in the volatile cryptocurrency market. It highlights the importance of regulatory oversight to safeguard investors from fraudulent schemes and financial loss.
