Brett (Based)

2024

Chair

Brett (Arbitrum)

Brett (SOL)

<h2 class="wp-block-heading" id="asic-takes-action-against-collapsed-crypto-mining-companies">ASIC Takes Action Against Collapsed Crypto Mining Companies</h2>
<p>The Australian Securities and Investments Commission <a href="https://twitter.com/asicmedia/status/1778619570514780241" target="_blank" rel="noopener noreferrer nofollow">(ASIC)</a> has stepped in following the collapse of several cryptocurrency mining companies under the umbrella of NGS Companies. In a significant move, a Federal Court has authorized the appointment of receivers for the digital assets previously owned by the companies and their executives, including Brett Mendham, Ryan Brown, and Mark Ten Caten.</p>
<p>Civil proceedings have begun against the trio, with allegations of risky financial practices and improper management leading to substantial investor losses.</p>
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   <p lang="en" dir="ltr">We have commenced civil proceedings against <a href="https://twitter.com/hashtag/blockchain?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#blockchain</a> mining companies NGS Crypto, NGS Digital and NGS Group – and their directors – for allegedly providing financial services without a licence <a href="https://t.co/Hgwk81V5TD" target="_blank" rel="noopener noreferrer nofollow">https://t.co/Hgwk81V5TD</a> <a href="https://t.co/XpKcXCBZxt" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/XpKcXCBZxt</a></p>— ASIC Media (@asicmedia) <a href="https://twitter.com/asicmedia/status/1778619570514780241?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">April 12, 2024</a>
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<h2 class="wp-block-heading" id="crypto-mining-collapse-leaves-investors-41-million-in-the-red">Crypto Mining Collapse Leaves Investors $41 Million in the Red</h2>
<p>The downfall of these companies has resulted in significant <a href="https://btc-pulse.com/bis-launches-project-tokenization-financial-systems/" rel="noopener noreferrer nofollow">financial </a>distress for approximately 450 investors, with combined losses amounting to more than USD $41 million. The ASIC claims that the directors of the NGS Companies encouraged investors to set up self-managed super funds (SMSFs) and <a href="https://btc-pulse.com/indias-web3-startup-ecosystem-surpasses/" rel="noopener noreferrer nofollow">invest </a>in highly volatile crypto assets.</p>
<p>Brett Mendham has also been barred from leaving Australia as the court fears further dissipation of the investors’ assets.</p>
<h2 class="wp-block-heading" id="regulatory-response-and-investor-warnings">Regulatory Response and Investor Warnings</h2>
<p>ASIC Chair Joe Longo has issued a warning to investors <a href="https://btc-pulse.com/price-prediction/spell-token-price-prediction/" rel="noopener noreferrer nofollow">regarding </a>the inherent risks associated with using SMSFs for cryptocurrency investments. This case serves as a critical reminder of the volatility and regulatory scrutiny surrounding crypto investments.</p>
<h2 class="wp-block-heading" id="other-crypto-funds-also-affected">Other Crypto Funds Also Affected</h2>
<p>The crypto turmoil extends beyond NGS Companies. Other firms like DCA Capital and Digital Commodity Assets have also been thrust into liquidation, <a href="https://btc-pulse.com/concerns-raised-over-chinas-us-bitcoin-mining/" rel="noopener noreferrer nofollow">potentially </a><a href="https://btc-pulse.com/european-nations-lead-google-bitcoin-halving-crypto/" rel="noopener noreferrer nofollow">increasing </a>the total owed to investors to over $150 million.</p>
<p>KordaMentha has been appointed as the liquidator for these firms as well, tasked with unravelling the <a href="https://btc-pulse.com/bis-launches-project-tokenization-financial-systems/" rel="noopener noreferrer nofollow">financial </a>dealings and securing any remaining assets for the affected investors.</p>
<h2 class="wp-block-heading" id="the-bigger-picture">The Bigger Picture</h2>
<p>This series of events highlights the ongoing challenges within the crypto industry in Australia, especially concerning regulatory compliance and investor protection. ASIC’s proactive measures indicate a stringent approach to oversight and enforcement, aiming to stabilize the financial and investment landscape in the face of emerging digital assets.</p>

Australian Crypto Mining Companies Collapse, Leaving Hundreds of Investors Out of Pocket in 2024

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