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Two arrested for ‘illegally managing £1 billion worth of cryptocurrencies’ in London | News from the UK
The pair, aged 38 and 44, were questioned and released on bail after a search of their offices in the capital, the Financial Conduct Authority said.
Thursday 20 June 2024 2.28pm, UK
Two people have been arrested on suspicion of running an illegal exchange believed to have traded cryptocurrencies worth more than £1 billion.
The Financial Conduct Authority (FCA) searched the London offices of the suspects, aged 38 and 44, while the Metropolitan Police digital devices seized in two residential properties in the capital.
More than £1 billion in unregistered assets cryptocurrency the goods are believed to have been bought and sold through exchange.
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Both suspects were interviewed under caution before being released on bail and the FCA says its investigations into the case were ongoing.
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 that we will do everything in our power to stop cryptocurrency companies from operating illegally in the UK.”
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The arrests follow a recent global crackdown on cryptocurrency companies after the collapse of some of the industry’s largest firms, which led to millions of people losing money they had invested in cryptocurrencies.
The high-profile implosion of FTX, the cryptocurrency exchange operated by Sam Bankman-Fried, saw the tycoon sentenced to 25 years in prison in the United States for defrauding customers and investors.
Image: Sam Bankman-Fried. Photo: Reuters
Meanwhile, Changpeng “CZ” Zhao, the founder of cryptocurrency exchange Binance, he was sentenced to four months in prison in April for allowing criminals to launder money on its platform.
Zhao, who resigned from Binance in November, pleaded guilty to violating US money laundering laws.
Binance is still operational and remains the largest cryptocurrency exchange in the world by transaction volume.
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The FCA has a register of so-called authorized crypto firms that are allowed to operate from the UK.
Currently, the list numbers 45, including crypto spin-offs created by financial giants such as Fidelity, Standard Chartered and Japanese investment bank Nomura.
But a separate list of crypto firms suspected by the regulator of operating illegally in the UK includes more than 13,000 firms.
The FCA also forces registered cryptocurrency companies to demonstrate that they comply with UK money laundering regulations in order to operate legally.