Stratford Hamilton and Peter Hart were recently appointed Joint Liquidators of LGCT International Limited (“LGCT”).
LGCT was a relatively obscure cryptocurrency which was launched on the market with a similar offering to more established digital currencies . However, the unique selling point of LGCT, according to its founder Luke Wilson, was its alleged ability to allow its users to purchase high end goods, including “Rolls Royce” cars and even houses!
The first concerns surrounding the functionality of LGCT were raised mainly from investors. It has been suggested in mainstream media that Wilson misled investors about the potential of this cryptocurrency, exaggerating its technical capabilities and investment potential while making unrealistic promises of high returns and rapid growth.
These allegations created a loss of faith in LGCT, significantly diminished investor confidence and led to the cryptocurrency losing the trust of its remaining customers.
The Joint Liquidators were appointed in order to conduct investigations into the affairs of the company, including the significant allegations made about the conduct of its director. Their role is to realise assets and pursue any claims that may be available to them in order to recover funds due to creditors.
Cryptocurrencies currently lack sufficient regulatory oversight, which makes them ripe for exploitation. Investors in digital assets have in many cases lost a significant amount of funds due to fraud. The frauds are often discovered too late to save investor funds and in any event, investments in cryptocurrency are highly volatile, and significant returns promised over a short period may be neither possible nor sustainable.
The incidence and considerable risk of fraud in the cryptocurrency is a clear sign of the need for enhanced regulations, transparency and due diligence when dealing with cryptocurrencies. Investors should be careful to research and scrutinize all investment opportunities that come their way, particularly if they involve cryptocurrencies. Additionally, regulators must play a more active role in ensuring ethical business practices and investor protection in the cryptocurrency market.
Here at PKFGM we have extensive expertise in dealing with these types of fraud cases, where on the face of it no assets appear to be recoverable. With our large network of PKF teams and ability to obtain legal support with our trusted contacts we are at the forefront of being able to recover funds for the victims of fraud.
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