A cryptocurrency exchange called Dragon
Payments — previously known as London Block Exchange — was recently placed into
compulsory liquidation. The exchange posted an announcement about the move on its website, in
which it claims that it was placed into compulsory liquidation 10 days ago, on
According to what is known, the Secretary of
State appointed two individuals as Joint Liquidators — Paul Appleton and Paul
Cooper. Both liquidators come from David Rubin & Partners and were
appointed around a week ago, on February 4th.
The pair has already been strong at working to
resolve the concerns of the exchange’s customers, especially when it comes to
the recovery of the sum that the exchange owed.
The exchange’s past
The exchange itself was launched during the
crypto craze in 2017. It managed to raise around 2 million GBP, and its initial
plans included rolling out a fiat-to-crypto exchange, with a focus on sterling.
The exchange also wanted to issue a prepaid Visa debit card, that would allow
users to pay for goods with cryptocurrencies across the country.
Unfortunately, the exchange pivoted only a year later, in 2018. Instead of moving forward with the initial plans, it decided to try and become a mobile exchange for investors in the UK. Then, last year, one of its creditors decided to take matters to court. The exchange’s CEO at the time, Benjamin Dives, claimed that the rumors about the exchange going out of business were false.
Even so, Dives admitted that the exchange is
in debt, which was at around 9,900 GBP. According to him, the bill did not
“come to his attention until it was very late.” He stressed that he
sent the money to the law firm as soon as he became aware of the debt, and he
firmly believed that the exchange would stay in business.
However, the host of a podcast called “What Bitcoin Did,” Peter McCormack, claims that the debt was much larger than the amount mentioned by Dives and that the real amount is multiple millions-large. Apart from owing its creditors, McCormack also claimed that the exchange owed salary to its investors since 2018.