ASIC launches civil proceedings against two Australian cryptocurrency firms, NGS and DCA Capital, following collapse, as investors are still owed over $160 million.
The NGS companies have been accused of targeting local investors to establish self-managed superannuation funds and then convert the funds into cryptocurrency for investment in blockchain mining packages with promised fixed-rate returns. The financial watchdog expressed concern over the potential dissipation of digital assets invested in blockchain mining and successfully petitioned the Federal Court to appoint liquidators specifically for NGS companies’ digital currency holdings. Mendham has also been barred from leaving Australia.
Concerns from investors regarding mismanagement, lack of proper licenses, and potential breaches of managed investment scheme regulations prompted the action.