A recent joint investigation by The Observer and the Bureau of Investigative Journalism revealed that crypto fraudsters are creating companies in the UK in order to give themselves a more solid image in front of their victims. The collected data showed that at least 168 companies based in the UK participated in fraud with digital assets or foreign currency due to the lack of an effective legal system to combat them.
However, it is likely that there are many more such firms, as journalists based their search on a list of suspected fraudulent organisations and internet reports.
It is worth noting that a significant part of the companies identified are cases where an attacker ingratiates himself with the victim and then persuades them to invest or withdraw their assets from the platform they manage. The perpetrator does not do it quickly, but rather takes his time to get as much money from the victim as possible. They usually target people through social media and online dating sites such as Tinder.
Many believe that registering their company in the UK gives them authority that would be reduced if they registered elsewhere. Registering a company here costs just £12 ($15) and requires no proof of identity, making it easy for fraudsters to exploit this loophole.
The Federal Bureau of Investigation (FBI) recently seized 151 BTC from fraudsters who posed as government officials and forced elderly people to send them funds.