Several Australian companies have recently come under scrutiny for allegedly persuading local investors to set up self-managed superannuation funds (SMSFs) and invest in blockchain mining packages, promising fixed-rate returns. The Australian Securities and Investments Commission (ASIC) claims that these companies, which lacked the necessary Australian financial license, attracted around 450 investors who collectively placed approximately 62 million AUD ($40 million) with them.
The ASIC expressed concerns about the risk of losing digital assets involved in blockchain mining and obtained a Federal Court order to appoint liquidators to manage the digital currencies held by the companies in question. Additionally, a travel ban was imposed on a key figure associated with these firms.
ASIC has also taken measures to stop these companies from illegally providing financial services in Australia. Other Australian cryptocurrency organizations, including DCA Capital, Digital Commodity Assets Pty Ltd, and the Digital Commodity Assets Fund, are also facing liquidation and federal court actions.
Investor concerns about mismanagement, inadequate licensing, and potential violations of managed investment scheme regulations have prompted these proceedings. The liquidator reported finding debts of 100 million AUD ($65 million) owed by these firms to 100 investors, and the Federal Court has frozen assets worth 55 million AUD ($36 million) belonging to the director of one of these companies, ordering him to hand over his passport.
Additionally, ASIC is in the process of appealing a Federal Court decision regarding Finder Wallet Pty Ltd, a company accused of operating without an Australian Financial Services license and violating several regulatory obligations related to its investment product called Finder Earn. Despite a recent dismissal of the lawsuit, Finder Wallet has stated its active involvement in proposing regulations and consistent engagement with ASIC throughout the legal process.
The company defended its product vigorously in court and expressed ongoing commitment to constructive dialogue with ASIC.