Cryptocurrency Worth $41 Million Seized in Australia

Unauthorized Mining Operation

Australian authorities have confiscated over $41 million worth of cryptocurrency from a blockchain mining group operating without a license. The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against NGS Crypto, NGS Digital, and NGS Group, along with their directors.

Protecting Investors

ASIC alleges that the companies’ operations violated the Corporations Act by providing financial services to investors without proper licensing. The commission believes that investors’ digital assets are at risk and has appointed a receiver to safeguard them.

Crackdown on Unlicensed Activities

ASIC is also seeking to prevent the NGS companies from offering financial services products in Australia without a license. ASIC Chair Joe Longo warned that crypto-related investments will be scrutinized to ensure compliance with regulations.

Caution for Self-Managed Super Funds

Longo advised Australians managing their own superannuation funds to be cautious about investing in crypto-related products like blockchain mining.

Warning to Crypto Industry

The seizure sends a clear message to the crypto industry that ASIC will continue to monitor products to protect consumers from unauthorized and potentially risky activities.