GPay Lured Customers and Investors with Fake Celebrity Endorsements and the Promise of an Easy-to-Use Platform
In late June, the UK Government’s Insolvency Service published a notice explaining that GPay—also known as XtraderFX and formerly operating as Cryptopoint—had been shut down after around £1.5 million (€1.66 million) of investors’ funds went missing.
Investigations found that at least 108 clients lost money, even when they purchased an insurance product intended to cover financial losses. When these traders attempted to withdraw the funds they had invested, they encountered repeated obstacles throughout the process.
Clients were obstructed by requests for additional information and verification—such as identity checks and utility bills—even though such checks were not required to make deposits.
The XtraderFX website is now offline. Archived copies of the site URLs still contain the company’s marketing claims that it offered a simple crypto trading platform and portfolio service, along with mining opportunities.
The platform promised that crypto enthusiasts could invest in trading without prior experience, supported by purportedly experienced traders and software tools designed to make trading easier.
GPay targeted individuals in the UK and abroad through online advertising campaigns and multiple social media channels. UK regulators explained that customers were encouraged to use the online trading platform through ads that falsely claimed support or endorsement from entrepreneurs who had appeared on television, including references to figures such as Peter Jones from Dragon’s Den.
The company, which had a profile on Trustpilot, faced complaints alleging unauthorized deposits, account closures without prior warning, and aggressive calls pressuring customers to invest further.
Crypto scams, fake initial coin offerings (ICOs), and so-called exit scams have been persistent problems in the cryptocurrency sector. Investors typically trade at their own risk unless an exchange is registered with government authorities, such as the U.S. Securities and Exchange Commission.
Martin Lewis, founder of MoneySavingExpert and a victim of fraudulent use of his image to promote this scheme, previously took legal action against Facebook over thousands of fake ads that used his name and likeness.
The dispute was resolved after the social network agreed to introduce a specialized reporting tool for scam ads and pledged £3 million to a Citizens Advice project to help address complaints related to online fraud.