The former CEO of Australian crypto exchange Mine Digital is facing one count of fraud for allegedly stealing $1.47 million (2.2 million Australian dollars) from a customer who sought to swap the funds for Bitcoin.
In a statement on Oct. 21, the Australian Securities and Investments Commission (ASIC) said the customer paid $1.5 million to Mine Digital’s parent, ACCE Australia, but never received the crypto.
ASIC alleges that Grant Colthup used the funds to pay ACCE’s liabilities, purchase cryptocurrency for others, or a combination of both.
It’s the latest accusation against the firm, which collapsed in September 2022. Since then, creditors have sought to recover $16 million.
ASIC said Colthup was informed of the fraud charge in a hearing at the Magistrates Court in Ipswich, Queensland, Australia, on Oct. 21, and the case was adjourned to Dec. 16.
Source: ASIC
Colthup was charged under section 408C of Queensland’s Criminal Code 1899, which carries a maximum prison sentence of 20 years.
Bitcoin (BTC) fluctuated between $18,890 and $24,580 when ASIC says the customer tried to make the Bitcoin purchase, CoinGecko data shows.
With Bitcoin currently trading around $67,460, that Bitcoin would now be worth between $4 million and $5.24 million.
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Mine Digital operated a crypto exchange platform and offered various trading services between May 2019 and September 2022 — when it entered administration.
An early investigation revealed that only $20,000 worth of assets were under ACCE’s control — far short of the $16 million claimed by creditors, the Australian Financial Review (AFR) reported on Oct. 13, 2022.
PKF’s business recovery and insolvency partner, Brad Tonks, was appointed ACCE’s liquidator a little over two months after the cryptocurrency platform collapsed on Dec. 1, 2022.
The AFR reported that PKF was reportedly looking to sue Colthup in January 2023, seeking a court order for Colthup to compensate creditors left chasing $16 million.
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