📰 Table Of Contents
The Collapse of NGS Companies
The collapse of Australia’s crypto mining company NGS has left hundreds of investors facing significant financial losses. The Australian Securities and Investments Commission (ASIC) has taken action by appointing receivers for digital assets held by the collapsed crypto mining companies and their owners.
ASIC’s Legal Proceedings
ASIC launched civil proceedings against three crypto-mining firms collectively known as NGS Companies, along with their directors Brett Mendham, Ryan Brown, and Mark Ten Caten. The court order restrains Brett Mendham from traveling outside Australia to prevent potential dissipation of assets.
Financial Impact on Investors
The collapse of the crypto mining firms has resulted in debts of over USD $41 million to 450 investors. These companies allegedly targeted investors to set up self-managed super funds (SMSFs) and then converted them into cryptocurrency.
Regulatory Allegations
ASIC alleges that the NGS Companies violated the Corporations Act by providing financial services without an Australian financial services license. The regulator is holding the companies accountable for illegally marketing investment products backed by crypto mining.
Warning to Investors
ASIC Chair Joe Longo cautioned investors to assess risks before using their SMSF for crypto-related investments. He emphasized the need for compliance with regulatory obligations to protect consumers in the crypto industry.
Other Crypto Funds in Liquidation
Aside from NGS Companies, other crypto funds in Australia such as DCA Capital, Digital Commodity Assets, and the Digital Commodity Assets Fund have also been forced into liquidation. These funds collectively owe investors more than $150 million, prompting the appointment of liquidators to investigate further.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
