Already a subscriber?A Gold Coast cryptocurrency spruiker encouraged mum and dad investors to put their super into the volatile digital assets for more than five years without a financial licence, new documents allege.
This type of language is significant for ASIC’s case because it may trigger financial advice laws. In 2022, ASIC issued guidance around the use of language on financial products. During this time, it was an authorised representative of Sydney-based investor Sapien Capital Partners. It is unclear why NGS Crypto ceased using Sapien’s licence. NGS Crypto still lists Sapien’s licence on policies on its website.“ASIC is aware of this information. In our current legal action ASIC alleges that NGS Crypto has provided financial services without a licence and seeks injunctions preventing it from doing so,” the regulator’s spokeswoman said.
More than 450 Australians invested about $US41 million in products offered by NGS Crypto. The company’s initial mining agreements ranged between $10,000 and $278,000.