ASIC charges former crypto exchange CEO with $1.47m Bitcoin fraud

Australia’s securities watchdog has charged the previous CEO of defunct crypto trade Mine Digital for defrauding an investor of $1.47 million.
The Australian Securities and Investments Fee has charged Grant Colthup with one rely of fraud after a buyer of Mine Digital didn’t obtain the Bitcoin they paid 2.2 million Australian {dollars} (roughly $1.47 million) for in July 2022.
Mine Digital operated as a cryptocurrency trade beneath ACCE Australia Pty Ltd, providing buying and selling providers between Could 2019 and September 2022. The platform collapsed in September 2022, and creditors have been pushing for $16 million in claims since then.
In its criticism, ASIC claims that the shopper paid the cash to ACCE Australia, anticipating to obtain Bitcoin in return, however Colthup allegedly used the funds to pay for his firm’s liabilities or buy cryptocurrencies with it, or each.
Nevertheless, this isn’t the one allegation the defunct agency has confronted through the years. Following its collapse in 2022, an investigation carried out by the Australian Monetary Overview revealed the agency had main discrepancies with its belongings beneath administration, displaying solely $20,000 in belongings regardless of the trade’s collectors claiming $16 million in losses.
Furthermore, ACCE’s court-appointed liquidator additionally sued Colthup in January 2023 looking for compensation for the corporate’s collectors.
Colthup has been charged beneath part 408C of Queensland’s Prison Code 1899 and could possibly be going through a most of 20 years behind bars. He’s set to look in courtroom on December 16, 2024.
This isn’t ASIC’s solely legal action this year involving a cryptocurrency agency the place buyers have suffered important losses.
In April this yr, the regulator initiated civil proceedings in opposition to NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd, accusing the businesses of deceptive round 450 buyers into investing in blockchain mining packages via self-managed superannuation funds, leading to losses of over 160 million AUD.
ASIC additionally initiated a nationwide crackdown in opposition to cryptocurrency scams after it was criticized by Australia’s minister for monetary providers in January for failing to warn locals a few $1.3 billion crypto rip-off.