Crypto asset mining allows transactions to be accounted for and entered on the blockchain and added to a distributed ledger. Any transactions are validated on the blockchain network which prevents double-spending; when cryptocurrency is spent it must be updated in the digital ledger.
BTCMining Limited managed a cryptoasset mining company registered in the UK and registered in January 2024. The company operated globally offering cryptomining services which involved customers being invited to pay for mining contracts with the opportunity of earning returns from the mined crypto assets. However, there were a considerable number of complaints from their clients from across the world, including countries such as far flung as Estonia, Mauritania, Iran, New Zealand, Poland, and Romania, stating that payments were made for services that were not received. Also, often the clients were being asked for additional payments.
Following a High Court ruling, the company was shut down in April 2025 due to the allegations of fraud and misconduct. The Court heard that, contrary to Companies House rules, the registered address provided by the business was a P.O box address which is not valid as Companies House requires a physical address to enable documents and notices to be delivered and access to a business must be available to the public. The associated websites were either inactive or provided the same contact details. This meant that neither the clients of the company or the investigating officers from the Insolvency Service could contact the principals of the company.
Stibich Martins Yhaicha Luzia, the sole director, had not submitted any statements or accounts since its inception. Many of the clients contacted Action Fraud which led to the involvement of the Insolvency Service to investigate as clearly the business was not conforming to the rules on clarity and and access. Insolvency Service Chief Investigator, David Usher said "the fact that BTCMining Limited was attracting customers globally makes our intervention particularly important. 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."
The Insolvency Service investigators believe that the clients of the company lost considerably more money than the amounts that they have traced and doubtless there are many other individuals that took up the opportunity for crypto asset mining than those that complained to Action Fraud.
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