The firm behind Pembrokeshire's failed Zano mini-drone project is being investigated by Trading Standards.
Pembrokeshire council said inquiries were being made into Torquing Group following complaints about the project.
On Wednesday, the company released a statement to backers, saying it had decided to pursue a "creditors' voluntary liquidation".
The project, based in Pembroke Dock, had raised over £2m through crowd funding.
Zano drones were already in production and were designed to be controllable via a smartphone app.