In a stunning turn of events, two Australian cryptocurrency schemes have recently collapsed, leaving investors across the country in a state of uncertainty. The collapse of these schemes has potentially resulted in investors being owed over $150 million. The Federal Court has taken action by ordering Ash Balanian, the operator of one of the cryptocurrency funds, to surrender his passport and freezing his assets up to the value of $55 million.
Liquidators from KordaMentha have been appointed to the companies operated by Balanian, including DCA Capital, Digital Commodity Assets, and the Digital Commodity Assets Fund. Concerned investors initiated the application, citing concerns about the fund’s management and its failure to meet licensing requirements. These investors had sought to redeem their investments in the fund, but with the scheme’s collapse, the fate of their funds remains uncertain.
Further investigations by the liquidators are expected to uncover more investors, potentially increasing the amount owed to over $100 million. Despite these allegations, Balanian’s legal team has yet to provide a response.
Separately, McGrathNicol has been appointed as receivers to blockchain mining companies NGS Crypto, NGS Digital, and NGS Group Ltd. The Australian Securities and Investments Commission (ASIC) has taken civil penalty action against these companies, alleging that they encouraged Australian investors to set up self-managed superannuation funds to invest in blockchain mining packages and cryptocurrency assets. ASIC’s investigations have revealed that over 450 Australians invested around $62 million through these companies.
These collapses serve as a reminder to investors to carefully consider the risks associated with cryptocurrency investments, particularly when using self-managed superannuation funds. ASIC’s actions highlight the importance of regulatory compliance in the crypto industry to protect consumers.
As the investigations unfold and the full extent of the collapses becomes clear, affected investors can only hope for a fair resolution to the financial hardship they now face.
The recent collapses of two Australian cryptocurrency schemes have sent shockwaves through the country, leaving investors in a state of uncertainty. The schemes, operated by Ash Balanian and the blockchain mining companies NGS Crypto, NGS Digital, and NGS Group Ltd., have potentially left investors owed over $150 million. These events have prompted the Federal Court to take action and order Balanian to surrender his passport and freeze his assets up to the value of $55 million.
Liquidators from KordaMentha have been appointed to oversee the companies operated by Balanian, including DCA Capital, Digital Commodity Assets, and the Digital Commodity Assets Fund. Concerned investors spearheaded the application, citing management concerns and the failure of the schemes to meet licensing requirements. These investors had initially sought to redeem their investments, but with the collapse of the schemes, the fate of their funds remains uncertain.
Further investigations by the appointed liquidators are expected to uncover more investors, potentially increasing the total amount owed to over $100 million. Balanian’s legal team has yet to provide a response to the allegations.
In a separate development, McGrathNicol has been appointed as receivers to the blockchain mining companies NGS Crypto, NGS Digital, and NGS Group Ltd. The Australian Securities and Investments Commission (ASIC) has taken civil penalty action against these companies, claiming that they encouraged Australian investors to set up self-managed superannuation funds to invest in blockchain mining packages and cryptocurrency assets. ASIC’s investigations have uncovered that over 450 Australians invested approximately $62 million through these companies.
These collapses serve as a stark reminder to investors to carefully consider the risks inherent in cryptocurrency investments, especially when using self-managed superannuation funds. ASIC’s actions underscore the importance of regulatory compliance in the crypto industry in order to protect consumers.
As the investigations continue and the full extent of the collapses is revealed, affected investors can only hope for a fair resolution to the financial hardship they now face.
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