The Financial Conduct Authority (FCA) collaborated with the Metropolitan Police Service to apprehend two individuals, aged 38 and 44, suspected of managing an illicit crypto asset exchange.

The operation was prompted by suspicions that the exchange facilitated transactions exceeding £1 billion in unregistered crypto assets.

Suspects Released on Bail

The FCA conducted inspections at premises linked to the suspects, where the police executed searches and seized multiple digital devices from two residential properties in London.

Following these actions, both suspects were questioned under caution by the FCA and subsequently released on bail. The investigation by the FCA remains ongoing. Under UK regulations, crypto asset exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term providers are required to be registered with the FCA and adhere to anti-money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term protocols to operate lawfully within the country.

Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, said: “The FCA has an important role to play in keeping dirty money out of the UK financial system. These arrests show we will do everything in our power to stop crypto firms from operating illegally in the UK.”

More than £1 billion of unregistered cryptoassets are believed to have been bought and sold through a suspected illegal cryptoasset business. #FinancialCrime #cryptoassets https://t.co/4YIoEMSPVG

— Financial Conduct Authority (@TheFCA) June 20, 2024

Alleging Fraud in High-Risk Forex and Pension Investment Schemes

The FCA has taken legal action against nine individuals for their roles in unauthorized forex trading schemes promoted through social media, as reported by Finance Magnates. Emmanuel Nwanze allegedly orchestrated the scheme, distributing unauthorized financial promotions via Instagram from May 19, 2018, to April 13, 2021.

The scheme involved unauthorized trading of high-risk Contracts for Difference (CFDs). Other individuals are also charged with issuing unauthorized financial promotions and are set to appear in court on June 13, 2024.

Additionally, the FCA has charged Kristofer McGuire, Keith Williamson, and Karla Walker with fraud connected to a high-risk trading scheme targeting pension investments in CFDs. Victims were allegedly misled into investing, resulting in significant financial losses exceeding £8 million.

The FCA's investigation uncovered misleading claims about the victims' professional investor status and detrimental trading strategies designed to generate substantial commissions. McGuire, Williamson, and Walker are slated to appear in court to address these charges.