Dragon Payments goes into liquidation and closes operations

Dragon Payments crypto exchange (formerly the London Block Exchange) has announced that it will go into liquidation and has closed operations. The announcement follows a “winding up order” against the company that was published on the official website at the end of January. Paul Appleton and Paul Cooper of the law firm David Rubin & Partners have been appointed as liquidators by the Secretary of State in the United Kingdom.

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1 Dragon Payments was founded in 2017 and has raised 2 million pounds

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“The liquidators work to resolve the clients’ concerns, including the recovery of any amounts owed, with priority. The joint liquidators team can be contacted directly and any questions or requests for money owed should be addressed directly to them. We will endeavor to provide an additional update as soon as possible. “

Although no details were provided on the financial status of the exchange, the liquidation order of January 2020 indicates cash flow issues. Such orders are usually imposed in the UK when a company is unable to pay its debts.

Dragon Payments was founded in 2017 and has raised 2 million pounds

Dragon Payments had planned to launch a stable cryptocurrency backed by the pound, which complies with the legal provisions. Apparently, they failed to pay the law firm Squire Patton Boggs on time.

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The financial problems appeared at the beginning of 2019 when two of the three directors of the company left for unclear reasons.

Founded in 2017, Dragon Payments managed to raise over £ 2m from investors before launching the company. Originally intended to provide customers with prepaid cards that allow for retail purchases using cryptocurrencies, Dragon Payments subsequently changed its mission to become a mobile crypto exchange for its UK customers.

Dragon Payments is just the latest in a series of crypto companies in Europe to shut down once the Fifth Anti-Money Laundering Directive of the European Union (EU) comes into force. Several analysts have already stressed the increased cost of compliance with the provisions of the new AML paradigm.

European platforms such as BottlePay and other crypto companies such as ChopCoin (games service) and Simplecoin (mining pool) have closed in the last few months.