ASIC accuses Australian mining companies NGS Crypto, NGS Digital and NGS Group, as well as their directors Brett Mendham, Ryan Brown and Mark Ten Caten of not having licenses to provide financial services in Australia and illegally marketing investment products based on cryptocurrency mining.
ASIC stressed that NGS group companies have launched a large-scale scheme to attract illegal investment in crypto assets under the promise of high percentages from mining digital assets. According to preliminary data from ASIC, the violators were able to receive at least $41 million from more than 400 investors.
"NGS schemes encouraged investors to transfer funds from regulated pension funds to self-managed super funds (SMSF), which were then converted into cryptocurrency. At the same time, promotional materials on websites, including positive reviews and success stories, were specifically targeted at older investors who are not well versed in the field of crypto assets," ASIC commented.
The country's financial market regulator has obtained a court order to block assets in digital currency belonging to the NGS group and their directors, as it had sufficient grounds that funds invested by investors in illegal cryptocurrency schemes could be squandered.
Earlier, the Australian Securities and Investments Commission filed a second lawsuit against the Finder crypto platform on the fact of illegal business related to the lack of a license from the regulator to provide financial services in the country.