Authorities have seized over $41 million from a blockchain mining group in Australia for allegedly operating without a license.
According to a new press release by the Australian Securities and Investments Commission (ASIC), civil actions are being taken against the NGS Crypto, NGS Digital and, NGS Group, as well as their respective directors, Brett Mendham, Ryan Brown and Mark Ten Caten.
“ASIC applied for these orders because it is concerned that the digital assets of investors, which are invested in the blockchain mining products offered by the NGS Companies, are at risk of dissipation and considered the appointment of a receiver was the best way to protect the assets.”
ASIC says that the way the firms ran their operations skirted section 911A of the Corporations Act by providing financial services to traders without having the proper licensing.
According to the press release, ASIC is also seeking junctions against the NGS firms to stop them from offering financial services products in Australia without a license.
As stated by ASIC Chair Joe Longo,
“Australians who decide to self-manage their super should consider the risks before using their SMSF (self-managed super fund) to invest in crypto related investment products such as blockchain mining.
These proceedings should also send a message to the crypto industry that products will continue to be scrutinized by ASIC to ensure they comply with regulatory obligations in order to protect consumers.”
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