British businessman sentenced to prison for using Covid loan to invest in crypto and gambling

A British businessman has been sentenced to 22 months in prison for fraudulently obtaining a Covid support loan and using the funds for crypto, gambling, and personal expenses.

According to the UK Insolvency Service (, Haralambos Ioannou, the owner of a glazing company in Edlesborough, received two Bounce Back Loans worth £50,000 each ) totaling approximately $133,000 (.

According to regulations, businesses are only allowed to receive one Covid support loan, but Ioannou fraudulently obtained approval for a second loan in the summer of 2020.

The first loan was legally used for business activities, but the second one was used for crypto investment, gambling websites, cash withdrawals, and transfers to the ex-wife.

The authorities stated that approximately 8,000 pounds )10.650 USD( were sent to "crypto investment" companies, while 25,000 pounds )33.250 USD( were used for gambling.

The court sentenced Ioannou to 22 months in prison, 150 hours of unpaid community service, and ordered him to pay £40,000, approximately $53,200.

The Business Liquidation Agency did not disclose the specific types of cryptocurrencies that this person has invested in.