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Australian Authorities Crack Down on Unlicensed Crypto Mining Schemes

The Australian Securities and Investments Commission (ASIC) has launched legal actions against NGS entities and directors for running unlicensed crypto mining investment schemes, involving over $62 million from around 450 investors.

  • The Australian Securities and Investments Commission (ASIC) takes civil legal action against NGS entities for soliciting investments in crypto mining schemes without a license.
  • Australian crypto funds DCA Capital and Digital Commodity Assets enter liquidation amidst legal challenges, highlighting regulatory scrutiny in the crypto sector.

The Australian Securities and Investments Commission (ASIC) has initiated civil legal action against NGS entities – NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd – along with their directors Brett Mendham, Ryan Brown, and Mark Ten Caten. 

These NGS firms have faced allegations of soliciting local investors to create self-directed superannuation funds (SMSFs), subsequently converting these funds into cryptocurrency for investment in blockchain mining schemes that offer guaranteed fixed returns. 

According to ASIC, about 450 investors funded $62 million through the companies. It's also claimed that companies offered financial services without holding an Australian license.

Additionally, Australian cryptocurrency funds DCA Capital, Digital Commodity Assets Pty Ltd, and the Digital Commodity Assets Fund have entered liquidation, and legal action is being taken against their director, Ashod Balanian.

Meanwhile, authorities in various countries are starting to go strict against crypto mining. Recently, a group of lawmakers in Paraguay proposed a bill to temporarily halt cryptocurrency mining operations, citing their heavy consumption of electrical energy. They have recommended a 180-day suspension on the functioning and setup of crypto mining establishments and associated processes.

Edited by Harshajit Sarmah