Unlicensed Crypto Companies Busted in Australia

The Australian Securities and Investments Commission (ASIC) is taking legal action against two crypto companies and their directors for operating without a license.

NGS Group Companies Targeted Investors

The NGS Group, including NGS Crypto, NGS Digital, and NGS Group, allegedly offered fixed-rate returns on blockchain mining packages to Australian investors. ASIC claims they encouraged investors to use self-managed super funds (SMSFs) and convert the money into crypto.

Lack of Licensing and Consumer Risk

ASIC alleges that these financial services were provided without proper licensing. The regulator is seeking injunctions against the NGS Companies and urges investors to be cautious about using SMSFs for crypto investments.

Industry Scrutiny

ASIC Chair Joe Longo warns the crypto industry that products will be scrutinized to ensure compliance with regulations and protect consumers.

Liquidators Appointed

The Federal Court has appointed liquidators to manage the companies’ digital assets, as investor funds were believed to be at risk.

DCA Capital Irregularities

Separately, over 100 investors are owed millions of dollars by DCA Capital, Digital Commodity Assets, and the Digital Commodity Assets Fund. Liquidators have been appointed to these companies after investors reported irregularities in fund management.

Frozen Assets and Passport

The Australian Federal Court has frozen the assets of crypto fund manager Ash Balanian and ordered him to surrender his passport.