Businesses: Two suspects have been arrested in connection with an illegal cryptocurrency exchange
Two people have been arrested on suspicion of running an illegal exchange that traded more than £1bn worth of cryptocurrency.
The Financial Conduct Authority (FCA) searched the offices of the suspects, aged 38 and 44, in London, while police seized several digital devices at two homes.
It is believed that more than £1 billion worth of unregistered crypto assets were bought and sold through the company. Both suspects were released on bail.
“The FCA has an important role to play in keeping dirty money out of the UK financial system,” said executive director of market enforcement and oversight, Therese Chambers.
The arrests follow a broader crackdown on the industry following the dramatic collapse of the FTX exchange and several other operators.
The FCA has been the anti-money laundering “overseer” for crypto asset firms in the UK since early 2020.
The latest figures show that the regulator has received 347 registration applications, of which only 47, or 14 per cent, have been accepted.
The FCA has consistently warned that investors should be prepared to lose all their money if they invest in cryptocurrencies, arguing that they are unregulated and high risk.
In May, Chinese “bitcoin queen” Jian Wen was jailed for six years over a £3bn crypto fraud.
Former Chinese takeaway worker found guilty of money laundering. He came to the attention of police when he attempted to buy a £23.5 million Hampstead mansion.
