Cryptocurrencies like bitcoin have been booming in popularity. George Frey/Getty Images LONDON — City of London Police have arrested a man suspected of setting up a "boiler room" to sell fake cryptocurrency to investors.

The Financial Times reports that a man was arrested on Wednesday at his home on suspicion of conspiracy to defraud and money laundering.

"The man is thought to be part of a group which allegedly set-up a ‘boiler room’ on Old Broad Street (EC2) which has allegedly been used to persuade people to invest in a cryptocurrency," the FT quotes the police as saying.

"Victims were cold called by salespeople who allegedly persuaded them to invest in a crypto currency which does not exist and is therefore worthless."

Business Insider has contacted City of London Police to confirm the story but they had not replied at the time of publication.

Cryptocurrencies have boomed in popularity this year, with many startups issuing their own digital currencies as a way of raising money. Businesses have raised over $1 billion through so-called "Initial Coin Offerings" so far this year and there are over 800 "altcoins" in circulation online, according to Goldman Sachs.