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ASIC

$41,000,000 in Crypto Seized From Blockchain Mining Group in Australia

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1 month ago

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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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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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ASIC

Regulators Investigating Collapsed Crypto Firm That Owes Creditors $58,000,000 After Going Bust in 2021: Report

Published

4 months ago

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January 23, 2024

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Australian securities regulators are investigating Blockchain Global after a report connected two of its directors to previous crypto schemes.

The Australian Securities and Investment Commission (ASIC) is investigating Blockchain Global directors Sam Lee and Ryan Xu after a newspaper investigation linked the two to another crypto scheme called Hyperverse, according to a report.

Asic began investigating the pair in connection with possible violations of Australia’s Corporations Act in 2021 following the fall of Blockchain Global. After the initial investigation, Asic chose not to take any action.

Now, after a Guardian Australia story linked the directors to Hyperverse, ASIC is looking into Blockchain Global’s liquidation report.

Says an ASIC spokesperson,

“ASIC confirms that it is assessing reports from the liquidator in relation to [Blockchain Global].”

A report from The Guardian Australia has uncovered significant losses in the HyperVerse investment scheme. Despite being flagged as a possible scam and suspected pyramid scheme overseas, the scheme managed to evade regulatory scrutiny in Australia.

The US Internal Revenue Service (IRS) has claimed that early investors were paid with funds from later investors, and the company’s claimed Bitcoin (BTC) mining operations did not actually exist. The estimated losses for HyperVerse in 2022 are around $1.3 billion. Furthermore, an investigation by ASIC into the collapse of Blockchain Global has revealed a potential link to HCash, a cryptocurrency associated with the Hyper investment schemes.

According to the report,

“Rewards that were accumulated through the earlier Hyper schemes were converted to HCash before they could be converted to other cryptocurrencies.”

While Ryan Xu’s whereabouts are currently unknown, Lee has not responded to the report.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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ASIC

Crypto firm Helio Lending gets bond sentence over false license claims

Published

9 months ago

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August 18, 2023

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Australia-based crypto lender Helio Lending has been sentenced to a non-conviction good behavior bond for a year for falsely claiming it had a local credit license.

On Aug. 17, the Australian Securities and Investments Commission (ASIC) said Helio was sentenced to the good-behavior bond for a year, having to pay $9,600 (15,000 Australian dollars) if broken.

Good behavior bonds are often granted for less serious offenses. A non-conviction good behavior bond will mean Helios will only be convicted if it breaks its bond, and will have to pay the $9,600.

ASIC said Helio falsely stated it had an Australian credit license in an August 2019 news article that appeared on its website.

Helio pleaded guilty which ASIC said was accounted for in the sentencing decision and a charge relating to a false representation of holding a license on Helio’s website was withdrawn.

Helio offered crypto-backed loans and is an Australian subsidiary of the United States-based crypto-focused public holding company Cyios Corporation which also owns the yet-to-launch nonfungible token (NFT) platform Randombly. 

ASIC charged Helio in April 2022 over the matter. In a circulating investor update from late 2018, Helio claimed it received the license by buying out Cash Flow Investments and its held license.

Related: Australia’s Bendigo Bank blocks high-risk payments to crypto exchanges

ASIC’s latest win follows other crypto-related suits its launched in recent weeks.

Earlier in August the regulator sued the trading platform eToro alleging its screening tests before offering leveraged derivative contracts to retail investors were insufficient.

Finder.com was also sued in December, with ASIC claiming the financial product comparison site’s crypto yield-bearing product was offered without the required license.

Magazine: Crypto City guide to Sydney — More than just a ‘token’ bridge