Authorities have seized more than $41 million from an Australian blockchain mining group suspected of operating without a license.
According to a new press release from the Australian Securities and Investments Commission (ASIC), civil proceedings have been filed against NGS Crypto, NGS Digital, NGS Group and their respective directors Brett Mendham, Ryan Brown and Mark ten Caten. It is said that it has been done. .
“ASIC applied for these orders because it is concerned that the digital assets of investors invested in blockchain mining products provided by NGS companies are at risk of dissipation, and “Because we thought the appointment was the best way to protect the assets.” ”
ASIC alleges these companies were operating in a manner that circumvented section 911A of the Corporations Act by providing financial services to traders without obtaining the appropriate licenses.
ASIC is also pursuing legal action to prevent NGS companies from offering financial services products in Australia without a license, the press release said.
ASIC Chairman Joe Longo said:
“Australians who decide to self-manage their super should consider the risks before using their SMSF (Self-Managed Super Fund) to invest in cryptocurrency-related investment products such as blockchain mining.
These proceedings will send a message to the cryptocurrency industry that products will continue to be scrutinized by ASIC to ensure compliance with regulatory obligations to protect consumers. ”
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Featured image: Shutterstock/KumaSora/Sensvector
