Documented Case

PGI Global UK Ltd

A UK company that sold cryptocurrency and forex trading packages promising returns of up to 200%. The Insolvency Service reported that approximately £612,425 was received from would-be investors before the company was wound up in the public interest.

Investment type: Cryptocurrency and forex trading packages
Documented investor losses: Approximately £612,425 received from would-be investors
Date / period: Traded July 2020 to February 2021; wound up 27 October 2022
Relevant organisation: The Insolvency Service / High Court
Nature of the matter: Insolvency — wound up in the public interest

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Background

PGI Global UK Ltd (company number 12466131) was incorporated in the United Kingdom and traded for a short period between July 2020 and February 2021.

The company formed part of a wider international operation marketing cryptocurrency and foreign exchange trading products to retail investors, supported by an affiliate-style recruitment structure in which existing investors were rewarded for introducing others.

The company was investigated by the Insolvency Service and subsequently wound up by the High Court in the public interest.

What investors were promised

Investors were offered cryptocurrency and forex trading packages and, according to the Insolvency Service, were promised returns of up to 200%.

The proposition was presented as professionally managed trading activity carried out on the investor's behalf.

How the scheme operated

Investors purchased trading packages and transferred funds, frequently in cryptocurrency, on the basis that those funds would be traded for their benefit.

The Insolvency Service investigation found that the company was unable to evidence trading activity capable of supporting the returns that had been advertised, and that its records did not adequately account for the money it had received.

What happened to investors

Investors did not receive the advertised returns and were unable to withdraw the capital they had committed.

The Insolvency Service reported that approximately £612,425 was received from would-be investors.

Insolvency and legal developments

Following the Insolvency Service investigation, PGI Global UK Ltd was wound up in the public interest by the High Court on 27 October 2022.

The Official Receiver was appointed as liquidator, with responsibility for realising any remaining assets and dealing with creditor claims.

What the case demonstrates

The case illustrates a recurring pattern in cryptocurrency investment matters: advertised returns that are far in excess of anything a genuine trading strategy could sustain, combined with a referral structure that relies on continued recruitment of new investors.

It also shows the civil winding-up powers available to the Insolvency Service where a company cannot account for investor funds, independently of any criminal proceedings.

Key Lesson

Advertised returns of up to 200% are not a feature of legitimate regulated investment. Investors should establish who holds their funds, where trading is actually carried out, and whether the firm is authorised to accept their money.

Source & Further Information

Cryptocurrency trading firm shut down after scamming investors
The Insolvency Service (GOV.UK) — published 27 October 2022
View the official source

These case studies summarise matters recorded in public sources including FCA publications, Insolvency Service and Serious Fraud Office material on GOV.UK, court judgments and the Companies House register. They are provided for information only, are not legal advice, and do not describe work carried out by BJM Recovery Ltd for any client. Where an investigation or set of proceedings remains open, the position stated is the position recorded at the date of the cited source.

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How We Approach Investment Loss Cases

Every investment recovery matter is assessed individually. The circumstances of the investment, the available evidence, the parties involved and the applicable recovery process will determine the appropriate course of action.

Our starting point in any matter is the documentation. We reconstruct the investment chronologically from agreements, payment records, statements, correspondence and marketing material, and we establish precisely which entities and individuals were involved at each stage, and in what capacity.

We then examine what is on the public record: the Companies House position, any insolvency appointments, regulatory publications, enforcement action and court proceedings. Public records frequently determine which routes remain open, whether that is a creditor claim in an insolvency, a claim against a regulated party in the advice or pension chain, participation in a distribution administered by a regulator, or civil proceedings.

Where a matter has been formally referred to us, we deal with the referring organisation directly and work within the process that applies to that referral.

If you have lost money through an investment that has failed, become insolvent or stopped communicating, we can review the information available and set out the position clearly.

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Have you experienced something similar?

Investment losses can be complex and every situation is different. If you have lost money through an investment that has failed, become insolvent or stopped communicating, our team can assess the information available and discuss the potential next steps.

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