Citing Bitcoin.com, hundreds of Australians have suffered major losses after a Federal Court ordered the liquidation of NGS Crypto and associated companies for operating without a license. More than 450 investors poured $40.2 million into the scheme, but liquidators have found only $4.6 million in cryptocurrency so far. The scheme targeted Australians with self-managed superannuation funds (SMSFs) by promising fixed-rate returns of up to 16% per year through blockchain mining packages. The Australian Securities and Investments Commission (ASIC) launched an investigation following concerns about improper handling of investor funds. Justice Berna Collier noted that the controllers of NGS Crypto failed to address “fatal flaws” in their operations even after becoming aware of ASIC’s concerns. Liquidators from advisory firm McGrathnicol have expanded powers to trace the missing millions, but recovery faces challenges due to crypto market volatility and locked assets. Freezing orders remain in place against the companies and their directors, including Ryan Brown, Brett Mendham, and Mark Ten Caten. Investors are urged to contact McGrathnicol to join the liquidation process.
Australians Lose Millions in Unlicensed Crypto Scheme Targeting Retirement Funds
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Summary
Australians lost millions in an unlicensed crypto scheme targeting SMSFs, with NGS Crypto and linked firms now liquidated by the Federal Court. Over 450 investors injected $40.2 million, but only $4.6 million in crypto has been recovered. The scam promised 16% annual returns via blockchain mining. ASIC probed the firm for mishandling funds, and the court cited “fatal flaws” in operations. McGrathnicol liquidators now have expanded powers to trace assets, though volatility and locked funds complicate recovery. Freezing orders target directors including Ryan Brown. Investors should contact McGrathnicol. The case highlights gaps in CFT and MiCA-style oversight.
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