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⚠️ Crypto & Politics: Bad News for British Investors
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👉 The cryptocurrency business, like any other, hopes to be protected from state repression. However, attempts to create a symbiosis of crypto projects and officials usually have negative consequences for both parties. An investment crypto fund associated (unofficially!) with some politicians and media personalities in the UK has stopped returning money to investors.
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Phoenix Community Capital (MarketCap $800 million) went public in early 2022 and attracted more than 8,000 investors with financial contributions ranging from $6,000 to $100,000, offering them to invest through the purchase of FIRE tokens, the internal currency of Phoenix.
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The company actively uses administrative resources and lobbying tools, including sponsoring the Multi-Party Parliamentary Group (APPG) and cooperating with members of the House of Lords. Advertising, with the active assistance of politicians, supports the image of the Phoenix Community as a reliable company, and the fund still receives serious investments.
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However, in September 2022, the company's social media pages were blocked and the website stopped working. Phoenix Community founder Luke Sullivan announced that he had left the fund, and in early 2023, the new management stated that they were not responsible to investors. Investor losses are reported to be in the tens of thousands of pounds, and The Guardian has reported that Phoenix Community Capital's influence of APPG and MPs may be misused for commercial purposes.
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That is, in addition to privacy violations and financial problems, crypto projects can contribute to the violation of laws, and an increase in the risk of fraud and cyber-attacks. And the state in such a joint business becomes an accomplice to these criminal schemes. Phoenix Community non-payment crisis is just beginning, but the situation for Britain's political beau monde is already extremely unpleasant.
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Let's see what happens.
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Profits to y’all!