Authorities in Australia have confiscated more than $41 million from a blockchain mining consortium for allegedly operating without the necessary license. The Australian Securities and Investments Commission (ASIC) has announced in a recent press release that legal actions are being pursued against NGS Crypto, NGS Digital, and NGS Group, along with their respective directors Brett Mendham, Ryan Brown, and Mark Ten Caten.

ASIC’s decision to seek these measures stems from concerns regarding the potential dissipation of investors’ digital assets in the blockchain mining products offered by the NGS Companies. The appointment of a receiver was deemed the most effective means of safeguarding these assets.

The regulatory body has highlighted that the firms’ operational practices circumvented section 911A of the Corporations Act, as they provided financial services to traders without the requisite licensing. ASIC is also moving to obtain injunctions against the NGS entities to prevent them from offering financial services products in Australia without proper authorization.

ASIC Chair Joe Longo emphasized the importance of caution for Australians managing their superannuation funds, particularly when considering investments in crypto-related products like blockchain mining. These legal proceedings serve as a clear message to the crypto industry that ASIC will continue to rigorously assess products to ensure compliance with regulatory standards, ultimately safeguarding consumer interests.

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