ASIC Takes Action Against Collapsed Crypto Mining Companies
The Australian Securities and Investments Commission (ASIC) launched civil proceedings against three crypto-mining firms, collectively known as NGS Companies. The proceedings also included the directors of these mining schemes: Brett Mendham, Ryan Brown, and Mark Ten Caten.
Crypto Mining Collapse Leaves Investors $41 Million in the Red
The crypto mining firms collapsed into liquidation owing 450 investors more than US$41 million. The companies allegedly targeted investors to establish self-managed super funds (SMSFs) and converted them into cryptocurrency.
Three Other Crypto Funds Thrust Into Liquidation in Australia
In addition to NGS Companies, fellow crypto funds in Australia – DCA Capital, Digital Commodity Assets, and the Digital Commodity Assets Fund – have been busted to liquidation.
Following a collapse of these crypto funds within a week, the schemes potentially owe more than $150 million to investors. A Federal Court has appointed liquidators from KordaMentha to these three firms operated by Balanian that offered cryptocurrency investments.
Additionally, liquidators are supposed to investigate to uncover more investors. Despite the allegations, the Balanian team has yet to respond.
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