Australia Takes Firm Action On Illegal Crypto Mining

Australia is dismantling illegal Bitcoin mining. (Photo; Doc. CryptocoinSpy)

JAKARTA - The mining industry (mining) of crypto in Australia has been tarnished by the disclosure of a major scandal involving illegal crypto mining operations. The Australian Security and Investments Commission (ASIC), which is Australia's financial and investment supervisory authority, began to intervene by taking action against three companies suspected of being involved in this fraudulent scheme.

Previously, ASIC received reports from investors who felt cheated by NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd. These three companies allegedly run a crypto mining scheme without permission. The ASIC investigation revealed that around 450 Australian investors had invested AUD 62 million (IDR 982 billion) into these companies, with a total value of digital assets estimated at USD 40 million (IDR 634 billion).

Concerns over mismanagement, lack of license, and violation of investment regulations prompted ASIC to take civil law action against these companies and their directors, including Brett Mendham, Ryan Brown, and Mark Ten Caten. They are accused of violating the Company's Law by providing legitimate licensing financial services.

The ASIC also asked the Federal Court to appoint liquidators to protect investors' funds, which were approved on April 10, 2024. Anthony Connelly, Kathy Sozou, and Jamie Harris of McGrathNicol were appointed crypto recipients to protect investors' funds from potential exploitation.

ASIC Warning

The chairman of the ASIC, Joe Longo, warned Australians to be careful in investing their self-administered pension funds (SMSF) in digital assets. He stressed that this case is a warning to the digital asset sector and emphasized ASIC's commitment to ensuring compliance with investor rights regulations and protection.

Even so, the ASIC will continue to carry out investigations and take firm steps to combat illegal practices in the domestic crypto industry. This shows their seriousness in creating a safe and trusted investment environment for the Australian people.