The Guardian published a report on Phoenix Community Capital, a cryptocurrency investment project that solicited investments in part based on credibility it built by ingratiating itself with parliament. The firm drew in approximately 8,000 investors, some of whom put in tens of thousands of pounds, before vanishing in September: the website went offline, and portfolio accounts became inaccessible. A post to the company's Twitter account reported the firm was "under new management", but the new company has said they have no obligation to make previous investors whole.The firm built credibility by sponsoring an APPG — all-party parliamentary group — and its co-founder, Luke Sullivan, was active as a speaker for parliamentary groups and events hosted by MPs. The firm promoted itself based on these ties to the UK government, including by publishing a blog post about how they "brought the Metaverse to the Palace of Westminster".
Some investors say they have lost more than $100,000 each. One such investor is Alan Rogers, a former Premier League footballer who sunk around $50,000 into the rather Ponzi-looking scheme.
