Authorities in Australia have confiscated more than $41 million from a blockchain mining group for operating without a license. The Australian Securities and Investments Commission (ASIC) has launched civil actions against NGS Crypto, NGS Digital, and NGS Group, along with their directors Brett Mendham, Ryan Brown, and Mark Ten Caten. ASIC expressed concerns about the potential dissipation of investors’ digital assets and decided to appoint a receiver to protect the assets. The companies were found to have violated section 911A of the Corporations Act by offering financial services without the required licensing. ASIC is also seeking injunctions to prevent the NGS firms from offering financial services products in Australia without a license. ASIC Chair Joe Longo emphasized the need for investors to carefully consider the risks before using their self-managed super funds to invest in crypto-related products. The proceedings serve as a warning to the crypto industry that ASIC will continue to scrutinize products to ensure compliance and protect consumers.
