UK Court Winds Up Crypto Firm Key Coin Assets in Ponzi Probe

Fraud cost the UK economy £14.4 billion in 2023–24, making it the country’s largest crime type, according to the government’s Fraud Strategy. The strategy sets aside more than £250 million between 2026 and 2029 to fight it.

The Financial Conduct Authority had already flagged Key Coin Assets as unauthorized back on September 12, 2024 – nearly two years before the court order shutting the firm down.

Because the firm was unauthorized, its customers were not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme. Those protections only apply to authorized firms.

The FCA has also raided eight premises linked to suspected illegal peer-to-peer crypto trading this year. That operation was its first coordinated action of that kind and led to cease-and-desist letters.

The Insolvency Service and FCA are telling investors to check the FCA’s Firm Checker and its list of unauthorized firms before investing. Guaranteed high returns and requests to avoid normal payment references are both warning signs.

Wider UK crypto rules take effect on October 25, 2027, under the Financial Services and Markets Act 2000 regulations finalized in February 2026. Firms will be able to apply for authorization starting September 30, 2026.

Separately, UK lawmakers opened an inquiry in July into whether banks are cutting off legitimate crypto companies. The Crypto and Digital Assets All-Party Parliamentary Group wrote to bank executives on August 11 and is gathering evidence through August 31.

The Official Receiver has now been appointed liquidator of Key Coin Assets Ltd following the High Court order.