cryto coin

Crypto Asset speculation is leading to UK personal insolvencies.

“We’ve noticed a steep increase in “crypto asset losses” being put forward as the main reason for personal insolvency by individuals in financial difficulty.” Andrew Bowers of Re10 Insolvency Practitioners commented.

Many retail investors have lost substantial sums over the last 12 months on the falling value of crypto assets.  The massive failures of stablecoin, Terra Luna, and exchanges such as Celsius, Genesis, Alameda, FTX, Blockfi etc have left investors high and dry.  Much of this is going completely unreported in the UK.

Individuals can also be caught out by the volatility of crypto assets, and many are losing more than they can afford by using margin trading which is effectively a form of high risk gambling with leverage giving rise to increased exposure.

“It doesn’t take much for a large crypto asset loss to make someone insolvent.”

The UK cryptocurrency market is increasing, with 2.5 million people having purchased crypto-assets according to the FCA.  The ease of access to trading apps make it easy for anyone to invest in alt coins, the vast majority of which have a habit of going down in value to £ zero.

Lots of people were drawn into the marketplace during lockdown.  They invested and gambled as a form of “hopium” and entertainment.  But most investors have lost substantial sums of money.

“Day trading and leveraging in crypto assets frequently ends in debt and eventually insolvency.  The trend is expected to continue.”

Andrew Bowers is a licensed insolvency practitioner and an expert finding solutions for people in debt.  This frequently involves crypto asset tracing, recovery and security.

Speak to one of our friendly and professional advisors and tell us about your circumstances. We can then discuss what debt solutions are available to your needs and what the pros and cons of each one is. There are many debt solutions available whether that by an informal Debt Management Plan or a more formal Individual Voluntary Arrangement (IVA) through to Bankruptcy or an Debt Relief Order (DRO).

For expert advice on debts contact us on 0800 169 1536 or leave an enquiry on our website.

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Customers can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. For more information from the Money Advice Service visit MAS is part of the Money & Pensions Service. We are not affiliated with MAS in any way.

Become Debt Free is a trading style of Re10 (Finance) Limited Registered Number 04651137.  Data Protection Act Registration Number – Z8613095

Become Debt Free specialise in providing and administering Individual Voluntary Arrangement (“IVA”) solutions to individuals based in England, Wales and Northern Ireland.  We do not administer Debt Management Plans, Debt Relief Orders, or any other debt solutions.  We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meets the criteria for an IVA, therefore, all advice is given in reasonable contemplation of an insolvency appointment.

* To qualify for debt write off in an IVA with us, you must have a minimum of £7,000 of qualifying unsecured debt owed to two or more creditors.  The amount of debt write off is based on your own personal circumstances – typically this could be up to 85% of what you owe; and this has been achieved by over 10% of our customers who have successfully completed their IVA’s in the last 12 months.  The amount of debt write off differs for each customer and is dependent upon their individual financial circumstances and subject to the approval of their creditors.

Andrew Bowers is authorised in the UK to act as Insolvency Practitioner by the Insolvency Practitioners Association.


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