British police arrest two Londoners suspected of running $1.2b crypto exchange

The British FCA, together with the Metropolitan Police Service, arrested two men suspected of operating an illegal multi-billion dollar crypto exchange.

The Financial Conduct Authority (FCA), in collaboration with the Metropolitan Police Service, has arrested two London residents suspected of operating an illegal crypto exchange.

In a press release on Thursday, the FCA said authorities believed £1 billion ($1.2 billion) worth of unregistered cryptocurrencies were traded through the business. The names of those arrested or the name of the exchange they operate in are not disclosed in the document.

The press release states that the FCA carried out investigations at the suspects’ respective offices and that police “seized a number of digital devices during searches of 2 residences in London.”

“Both suspects were interviewed under caution by the FCA and released on bail. The FCA’s investigation into the case is ongoing,” the Financial Conduct Authority said.

Commenting on the arrests, Therese Chambers, FCA director general of enforcement and market surveillance, said the action showed the agency “will do everything we can to stop crypto companies operating illegally in the UK”.

Under UK law, crypto exchange providers must register with the FCA and comply with anti-money laundering regulations in order to operate legally. Not all international crypto companies are licensed to provide services in the UK; After FCA’s pressure, Binance and Bybit became unusable.

In early May, the UK Treasury presented a report on its work over the past two years, highlighting its efforts to monitor the crypto market. The document, titled “Anti-Money Laundering and Counter-Terrorism Financing”, revealed that the FCA examined the activities of 238 firms between 2022 and 2023, with around a third of its staff tasked with overseeing crypto-related operations.