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Former crypto exchange CEO charged in $1.47M Bitcoin fraud

Former crypto exchange CEO charged in $1.47M Bitcoin fraud

GrafaGrafa2024/10/22 07:35
By:Isaac Francis

The Australian Securities and Investments Commission (ASIC) has charged Grant Colthup, the former CEO of defunct crypto exchange Mine Digital, with fraud involving $1.47 million. 

The charge follows allegations that Colthup failed to deliver Bitcoin (CRYPTO:BTC) to a customer who paid approximately 2.2 million Australian dollars (around $1.47 million) in July 2022. 

According to ASIC, Colthup used the customer’s funds to cover company liabilities or purchase other cryptocurrencies instead of fulfilling the agreed transaction. 

Mine Digital, which operated under ACCE Australia Pty Ltd, provided crypto trading services between May 2019 and September 2022 before its collapse. 

Following its downfall, creditors have sought $16 million in claims. 

The watchdog’s investigation into the defunct exchange also uncovered significant asset discrepancies. 

An early review revealed that Mine Digital had only $20,000 in assets, raising suspicions as creditors claimed $16 million in losses. 

This discrepancy prompted further legal scrutiny, with ACCE’s liquidator suing Colthup in early 2023 to seek compensation for creditors. 

Colthup has been charged under section 408C of Queensland’s Criminal Code 1899

If convicted, he could face up to 20 years in prison. 

His next court appearance is scheduled for December 16, 2024. 

This case marks another instance of ASIC’s increased oversight of the crypto industry. 

Earlier this year, the regulator took legal action against NGS Crypto Pty Ltd and related entities for misleading over 450 investors. 

The companies allegedly encouraged investors to purchase blockchain mining packages through self-managed superannuation funds, leading to losses exceeding 160 million AUD.

At the time of writing, the Bitcoin price was $67,624.07.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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