Phoenix Community Capital, a renowned cryptocurrency investment venture associated with prominent personalities in politics and media in the UK, has recently ceased returning investments to its clients.
The project’s market capitalization was valued at approximately $800 million when it was introduced to the UK public market in 2022, branding itself as a secure and highly profitable investment platform.
Through the use of administrative resources and lobbying tools, the company established its reputation among popular UK politicians and media personalities.
Phoenix Community Capital openly sponsored the Multi-Party Parliamentary Group (APPG) and had public collaborations with members of the House of Lords and MPs. This proactive stance and endorsement from members of Parliament attracted over 8,000 investors to the project, who invested between $6,000 and $100,000 via the purchase of $FIRE tokens, the platform’s internal currency, with a guaranteed return on investment within 45 days.
However, in September 2022, Phoenix Community’s social media accounts were suddenly blocked, and its website ceased to function. Luke Sullivan, the company’s CEO and co-founder, later announced on Twitter that he had left the company and that Phoenix had new management.
In early 2023, the new project administration informed investors that they were not accountable for their investments but would attempt to help to the best of their ability. Former Phoenix project participant and former Premier League footballer Alan Rogers disclosed that investors were losing thousands of pounds, with him losing about $50,000 irreversibly.
The Guardian reported that the loss of clients’ money raised concerns in UK government circles about the misuse of the influence of APPG and members of Parliament on public opinion to achieve commercial goals by crypto companies.
Money Mongers, an analytical portal, previously published a report showing that the annual expenses of cryptocurrency firms for promoting and supporting lobbying structures for their projects increased from $2.5 million in 2017 to $25.57 million in 2022.