Two Australian cryptocurrency companies have collapsed into liquidation owing hundreds of investors more than $160 million. The Australian Security and Investments Commission has launched civil proceedings against NGS companies - NGS Crypto Pty Ltd, NGS Digital Pty Ltd and NGS Group Ltd - and the directors of these schemes - Brett Mendham, Ryan Brown and Mark Ten Caten. NGS companies are blockchain cryptocurrency mining companies.
launched the request for this order over concerns the digital assets invested in blockchain mining products were at risk of being dissipated. Mendham has also been blocked from leaving Australia. The watchdog is also seeking to stop NGS companies providing financial services in Australia without a licence.
chair Joe Longo warned Australians of the risks of investing their self-managed super funds into cryptocurrency investments. “These proceedings should also send a message to the crypto industry that products will continue to be scrutinised by to ensure they comply with regulatory obligations in order to protect consumers,” Longo said in a statement. Separately, fellow Australian cryptocurrency funds - DCA Capital, Digital Commodity Assets Pty Ltd and the Digital Commodity Assets Fund - have been thrust into liquidation with federal court proceedings also pursued against the companies’ director Ashod Balanian.