SYDNEY, Australia, Tuesday, April 23, 2024 – The Australian Securities and Investments Commission (ASIC) has launched legal proceedings against three blockchain mining companies accused of operating without a license and violating financial regulations.
ASIC alleges that NGS Crypto, NGS Digital, and NGS Group promoted blockchain mining packages with fixed-rate returns to Australian investors, potentially leading to significant financial losses, according to a report on the ICLG website. 1 ICLG.com is a premier global hub for legal reference, analysis, and updates, offering a wide array of legal guides and research tools spanning over 100 jurisdictions and 58 practice areas.
The Australian regulator is seeking court orders to halt these companies from offering financial services without proper authorization.
Concerns have been raised regarding the estimated 450 Australian investors who collectively invested around USD 41 million in these companies. ASIC emphasized the importance of investor protection and urged individuals to carefully consider risks before investing in cryptocurrency-related products.
To safeguard investors’ digital assets, the Federal Court appointed receivers for the companies’ assets and imposed travel restrictions on key figures involved.
Reports say that the confusion arose due to the similarity in names between the investigated companies and NGS Super, a legitimate Australian pension provider.
NGS Super clarified its position, stating it has no involvement in selling cryptocurrency products and has taken legal action to protect its trademark and members’ interests.
ASIC’s investigation is ongoing, with the regulator continuing to gather evidence and build its case against the accused companies.
