Dragon Payments Ltd., formerly known as London Block Exchange (L.B.X.), fell into compulsory liquidation according to an official announcement. A winding-up instruction was made against the startup company on January 31, 2020.
Paul Cooper and Paul Appleton, who both work at David Rubin & Partners, became the joint liquidators on February 4 via a U.K.’s U.K.’s Secretary of State Order. These liquidators and their assembled team are striving to resolve customers’ concerns that include recovery of owed sums as a matter of priority.
L.B.X. launched in 2017 after raising over £2 million (roughly $2.6 million) from investors, as reported by Business Insider. Initially, the company planned to issue prepaid cards enabling users to shop with cryptos. However, it pivoted in 2018 to become a mobile exchange for U.K.U.K. investors.
The Ex-CEO’s Take
L.B.X. was taken to court in April 2019 by one of its creditors in a bid to recover a debt. Benjamin Dives, the then-CEO who ran the company until its liquidation order, said that £9,900 (almost $12,900) had not been paid on time.
At that time, Dives denied all the rumours that the company was facing liquidation. He said:
‘The bill didn’t come to my attention until it was very late’
He explained that when he learnt about that matter, he instantly sent the needed money to the law firm. That petition was issued within 24 hours. On his part, Dives was convinced that L.B.X. would not go out of business, and the court would rule in its favour.
But, Peter McCormack, who is the host of ‘What Bitcoin Did’ podcast, asserted that the exchange’s debt was more than what Dives shared. He claimed that employees had not been paid since 2018. The company did not comment on these allegations.
L.B.X.’s filing history at Companies House is yet to be updated to feature the compulsory liquidation order.