Authorities have seized more than $41 million from a blockchain mining group in Australia for allegedly operating without a license.
According to a new press release from the Australian Securities and Investments Commission (ASIC), civil action is being taken against NGS Crypto, NGS Digital and NGS Group, as well as their respective directors, Brett Mendham, Ryan Brown and Mark Ten Caten.
“ASIC has applied for these orders because it is concerned that investors’ digital assets invested in the blockchain mining products offered by the NGS companies are at risk of disappearing and believes that the appointment of a receiver best way is to get the assets.”
ASIC says the way the companies ran their business circumvented section 911A of the Corporations Act by providing financial services to traders without being properly licensed.
According to the press release, ASIC is also seeking liaison against the NGS companies to stop them from offering unlicensed financial services products in Australia.
As stated by ASIC Chairman 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.
This procedure should also send a signal to the crypto industry that products will continue to be scrutinized by ASIC to ensure they comply with legal obligations to protect consumers.”
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