GPay lured clients and investors with fake celebrity endorsements and the promise of an easy-to-use platform
At the end of June, the UK Government’s Insolvency Service published a notice announcing the closure of GPay — also known as XtraderFX and formerly operating under the name Cryptopoint — after investigators found that approximately £1.5 million ($1.8 million) of investor funds had been lost.
The probe revealed that at least 108 clients suffered financial losses, even when some had paid for insurance meant to cover investment setbacks. When these investors tried to withdraw their funds, they encountered numerous obstacles that prevented them from retrieving their money.
Withdrawal attempts were blocked by repeated requests for additional information and documentation, including identity and utility verifications, despite the fact that such checks were not required to make initial deposits.
Although the XtraderFX website has been taken down, cached versions of its pages still display the company’s marketing claims: a simple crypto trading interface, portfolio management tools, and even an option to participate in mining activities.
The platform promoted itself as a way for people with little or no trading experience to invest in cryptocurrencies, claiming support from seasoned traders and automated tools designed to simplify trading decisions.
GPay reached potential customers in the UK and abroad through online ads and multiple social media channels. UK regulators reported that the company used promotional material that falsely suggested endorsement from well-known entrepreneurs, including figures who have appeared on television programs such as Dragon’s Den.
Consumer reviews and complaint platforms recorded numerous problems. Users reported unauthorized deposits, accounts closed without notice, and persistent phone calls pressuring them to make further investments.
This case is one example of a broader pattern of fraud affecting the cryptocurrency space. Scams involving fake exchanges, sham initial coin offerings (ICOs), and exit scams are common, and investors often bear the risk unless they use platforms registered with recognized government authorities, such as the US Securities and Exchange Commission.
Martin Lewis, founder of MoneySavingExpert, was among those whose image was misused in promotions for this scheme. He previously took legal action against Facebook over the widespread abuse of his name and likeness in deceptive advertisements.
That case was resolved after the social network agreed to introduce a dedicated reporting tool for scam ads and to contribute £3 million to a Citizens Advice project aimed at helping people report and resolve scam-related complaints.