Cryptocurrency investment firm disappears, leaving 8,000 investors at risk of losing millions
Phoenix Community Capital, a cryptocurrency investment firm previously valued at $800m, has vanished, leaving approximately 8,000 investors fearing huge losses. The company was a sponsor of one all-party parliamentary group (APPG) and its co-founder, Luke Sullivan, was a guest speaker at a second APPG event. Its website went offline in September last year and investors lost access to their investment portfolios, known as “nests”, from that date. Some investors, including a former Premier League footballer, have reported losses of tens of thousands of pounds. The situation is set to fuel concerns about the use of APPGs to provide companies with prestige and access to politicians without sufficient scrutiny.
Crypto sector’s lobbying of MPs and peers raises questions of regulation
Phoenix Community Capital’s case highlights the rise of lobbying by the crypto sector in the UK in the face of growing calls for regulation. The financial sector is still largely unregulated, and investors have repeatedly been warned of the risks associated with investing in cryptocurrency, which include the potential loss of all their money.
APPGs’ potential role in providing companies with prestige and access to politicians raises growing concern
APPGs are informal groups set up in parliament and made up of MPs and peers. They must be chaired by MPs, but are often run or funded by lobbyists and corporate donors seeking to influence government policy or gain credibility. The fact that a cryptocurrency investment company could sponsor one such group is set to prompt further questions about the potential loopholes surrounding the regulation of APPGs.
Read More Here https://www.theguardian.com/politics/2023/feb/23/crypto-firm-with-links-to-parliamentary-groups-appears-to-have-vanished
