The digital currency industry has been hit by scams and ripoffs, the latest being PGI Global UK. The country’s High Court dissolved the digital currency firm after allegedly defrauding investors of $709,000.
The company promised its investors that they could make up to 200% in returns, but when the time came for the investors to withdraw their promised returns, the platform prevented them from doing so.
The company had made false claims and failed to deliver on its promises, leaving its investors high and dry. PGI Trading Ltd (owners of PGI Global UK) has also been shut down by the US Department of Justice and the US Treasury.
Rife With Scams
The cryptocurrency industry is rife with scams and ripoffs, with some of the most prominent players in the sector involved in various shady dealings. In addition, there have been multiple cases of money laundering, insider trading, and, worse, trailing these top crypto players.
Bitcoin (BTC) is a cryptocurrency marred by scams and theft. However, many people in the industry continue to support it. Thankfully, more people are waking up and realizing that all isn’t as glossy as it seems in the crypto world.
Terra’s UST (its algorithmic stablecoin) crashed in the second quarter of this year, with investors losing billions overnight. In addition, Three Arrows Capital, a crypto hedge fund, has been accused of running a Ponzi scheme.
The firm borrowed billions of dollars and refuses to cooperate with law enforcement. This has forced lawyers for liquidators to subpoena them on Twitter. Several digital currency lending platforms have also gone under, taking billions in user deposits.
Crypto lender, Voyager Digital, froze user accounts overnight, and Celsius Network’s CEO cashed millions of dollars selling off his CEL tokens (his platform’s native token), leaving users holding the bag.
The Law Is Catching Up
In recent years, there has been a crackdown on crypto-related scams by regulators and law enforcement. PGI Global UK is the latest company to be shut down, but many others have been shut down before then.
This PGI Global scam is the latest in a long line of crypto-related scams that authorities have shut down. In addition, Binance, FTX, and Tether (USDT stablecoin issuer) are still under investigation by various regulators.