UK Crypto Business Closes After Customers Claim Unpaid Returns, Blocked Withdrawals

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

April 30, 2025

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A UK-based crypto asset business, BTCMining, has been shut down after a number of customers from various countries reported paying for crypto mining services but not receiving the promised returns or being able to withdraw their assets, according to a statement released Wednesday.

The business, which claimed to operate a mining service where customers paid to mine crypto and receive the resulting income, was accused of scamming users across several countries, including Estonia, Mauritania, Iran, New Zealand, Poland and Romania.

The complaints were first brought to the attention of Action Fraud, which is the UK’s national fraud and cybercrime reporting centre. Victims claimed they had not received the mining services they had paid for, and many also faced further demands for additional payments.

Upon investigation, authorities discovered that BTCMining Limited did not have a legitimate registered address in the UK, a red flag in any business operation.

UK Court Decision Shuts Down BTCMining After Global Fraud Allegations

A hearing at the High Court in Manchester on 28 April 2025 led to the company’s closure. David Usher, chief investigator for the Insolvency Service, pointed to the global nature of the fraud.

“The fact that BTCMining Limited was attracting customers globally makes our intervention particularly important,” Usher said. “We acted on the complaints before their reach could have affected countless more individuals. It’s vital that the public, both here in the UK and abroad, are protected from companies acting in this way.”

Efforts to Contact BTCMining’s Director Fail, Raising Concerns Over Wider Impact

Investigators were unable to contact the company’s director, Stibich Martins Yhaicha Luzia. He had been the sole director since the company’s incorporation in Jan. 2024. Attempts to reach him through known email addresses and telephone numbers were unsuccessful. Additionally, the company’s websites became inactive or provided no new contact details.

The director’s contact address, listed with Companies House, was a residential property. The occupants were unaware of the business and had not given permission for their address to be used.

Although six complaints have been formally lodged with Action Fraud, authorities believe the actual number of victims could be much higher. The complaints revealed that customers collectively lost more than $18,000. However, this figure may only represent a fraction of the total financial impact.

Investigators are concerned that more individuals may have been affected. These potential victims have yet to come forward.