Crypto Scammers Use UK for “Pig-butchering”
The UK’s lax and opaque corporate laws have been widely used by criminals, who like to “fatten” their victims before “going in for the kill.”
The UK is enticing crypto fraudsters and criminals.
According to an investigation by the Bureau of Investigative Journalism and the Observer, fraudsters have been using the country as a virtual base for their operations, exploiting lax regulations to carry out large-scale fraud.
The journalists claim that 168 UK companies have been accused of running fraudulent cryptocurrency or foreign exchange trading schemes. Around 50% of them could be linked to pig-butchering scams, i.e. the type of romance scam when malignant individuals “fatten” their victims by slowly building their trust before stripping them of cash.
Many of these firms are linked through domain registrations and while the vast majority of company directors are resident in China, details about the real owners are scant due to loopholes in the Companies House registration system,the investigation reads
They add that many of these companies use random addresses such as those belonging to an empty shop or flats “above a Chinese takeaway.”
Likewise, they state that UK authorities are aware of these schemes. Yet, not much has been done to shut down the scams or prevent new ones from springing up.
Commenting on the matter, Margaret Hodge, MP and chair of the APPG on Anti-Corruption and Responsible Tax, said that people traffickers, drug smugglers, fraudsters, and scammers have been exploiting the UK's lax and opaque corporate laws for years.
Companies House is our first line of defense, but it’s not putting up much of a fight at all. It must check the information it is given and punish those who lie. And it needs to be properly funded to fulfill its role. At present, it costs £12 to incorporate a company. Raising the fee to £100 would provide enough resources to our law enforcement without increasing costs for the taxpayer,she said
Previously, GNcrypto shed light on 3 social media crypto scams you should be aware of.
