UK corporate law is too weak for crypto scammers

02/05/2023

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The Bureau and The Observer provided a report on their investigation into criminal groups in the United Kingdom. According to them, the country's lenient legislation is a perfect virtual breeding ground for fraudulent activity.

The Bureau of Investigative Journalism’s lights counted about 168 companies in the U.K. that are involved in crypto scammers. Many of them use a "pig-butchering" scheme and loopholes in the company registration system. Weak registration laws and a very cheap price create the perfect environment to create a convincing scam.

Slowly gaining the victim's trust through social media, the scammers convince them to invest a small amount, usually by depositing it into a wallet and exchange under their control. Having "fattening" the victim, the scammers further persuade them to make a larger contribution, after which they disappear.

According to ActionFraud, losses from crypto-fraud in the UK in 2022 amounted to 329 million pounds sterling.

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