Phoenix Community Capital Has Vanished Leaving Some Investors In Oblivion

Updated: 23 February 2023

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Crypto firm Phoenix, which has links to parliamentary groups, has vanished in thin air, leaving investors concerned about their holdings.

What: Phoenix Community Capital is nowhere to be found
Why: Its website went offline in September, and portfolios (nests) became inaccessible. Company assets and name were sold to a new firm
What Next: Questions are bound to arise concerning the role of the APPGs in parliament. Co-founder Sullivan has asked a news site to fly to the Philippines for further discussion

Cryptocurrency investment firm Phoenix Community Capital, said to have links to all-party parliamentary groups (APPGs), the House of Lords, and parliamentarians, has vanished. The company ventured into the crypto scene in 2022, touted as a “cryptocurrency project and investments scheme” valued at $800m (£665m). It sponsored one APPG while its co-founder Luke Sullivan spoke at another APPG gathering. This was besides various panelist appearances for events hosted by fellow parliamentary groups. Sullivan exited the company in September, with his Twitter feed (now deleted) saying the company was under new management.

Phoenix Community Capital, a crypto investment firm with links to two all-party parliamentary groups, appears to have disappeared, leaving some investors – including former footballer Alan Rogers – fearing they have lost tens of thousands of pounds https://t.co/Lx04jjRumy

— James Dart (@James_Dart) February 23, 2023

Based on a recent report in The Guardian, there have been no traces of Phoenix Community Capital since September last year. Its website went down, and investment portfolios (nests) became inaccessible. Reportedly, the company sold some of its assets, including its name, to a startup led by “Dan.” In his capacity, Dan said that while his company does not have any obligation to the investors, it would work to earn them some returns. In an October message, the new company disclosed having made positive returns of up to $57m for almost 1,000 investors. Around 7,400 were recording losses of up to $87m.

Following the incident, up to 8,000 investors are complaining about being unable to access their accounts and are now concerned about the fate of their money. The investors, including former Premier League football star Alan Rogers, disclosed losing tens of thousands of pounds after buying the platform’s ‘Fire’ tokens. With this incident, there are bound to be questions on companies’ use of parliament and the APPG system to confer prestige upon themselves and easy access to politicians. The incident also highlights a new trend in the crypto sector to lobby MPs and peers as the government plans more regulation for the industry. Co-founder Sullivan has asked a news site to fly to the Philippines for further discussion.