The Australian Securities & Investments Commission announced that the Federal Court has found blockchain mining companies NGS Group Limited, NGS Crypto Pty Ltd and NGS Digital Pty Ltd operated a financial services business without an Australian financial services (AFS) licence, including by operating and promoting an unregistered managed investment scheme. The Court permanently restrained the three companies from operating a financial services business and ordered that NGS Group, NGS Crypto and the unregistered managed investment scheme operated by NGS Group be wound up, with liquidators appointed. More than 450 Australians invested approximately AUD 59 million with NGS Group over six years, with many investing retirement savings via self-managed superannuation funds (SMSFs) that NGS Crypto encouraged them to establish, in blockchain mining packages promising fixed-rate returns. The Court appointed Anthony Connelly, Katherine Sozou and William James Harris of McGrathNicol as liquidators, and noted investor harm from the lack of an AFS licence and a justifiable lack of confidence in the companies’ conduct and management; related Federal Court orders made on 10 April 2024 had appointed the same individuals as receivers over the companies’ digital currency assets and restrained a director from travelling outside Australia. ASIC’s investigation into the NGS companies and their directors is continuing.

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