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Posted on December 18, 2018 by staff

Crypto start-up enters administration after €29m scam

A London-based cryptocurrency trading platform has entered administration after the company claims it fell victim to a “serious criminal act”.

Dooga Limited, trading as Cubits, said fraudsters stole approximately €29 million in February 2018, forcing the company to appoint administrators.

The firm stressed that it has made “every possible effort” to recover the funds – and informed the responsible authorities in the UK, Malta, China and Germany – but it has been unsuccessful so far.

Steven Parker and Trevor Binyon, from Opus Restructuring, were appointed as joint administrators on 10 December 2018.

“This decision secures the current position whilst the administrators seek offers for the business and its assets,” Cubits said in a statement.

“The role of the Administrators will be to work with those who are owed money by the Company and to collect monies that are owed.

“The key objective is to achieve the best possible outcome for creditors and recover as much as possible of the funds owed to the company.”

Steve Parker at Opus added: “We have assembled a partner team from Opus with specialist expertise in technology, insolvency and forensic accounting.

“Our goal is to achieve the best outcome for creditors generally at the earliest possible date. Dooga’s current position is secure, investigations are proceeding and we will be writing to creditors, formally, this week.”

The administration means that investors cannot deposit or withdraw funds until further notice.