As a seasoned crypto investor with over a decade of experience in this volatile market, I find the recent developments surrounding Mine Digital and its former CEO, Grant Colthup, deeply concerning. The allegations of fraud and mismanagement are not only a blow to the reputation of the industry but also a stark reminder that not every player in the crypto space is trustworthy.
Previously, the head of digital currency exchange Mine Digital in Australia stands accused of one charge related to fraud, with claims that he illegally obtained approximately $1.47 million (equivalent to 2.2 million Australian dollars) from a client who intended to trade those funds for Bitcoins.
On October 21st, the Australian Securities and Investments Commission (ASIC) declared that a Mine Digital client parted with AUD 1.5 million, yet failed to receive the promised cryptocurrency from ACCE Australia.
According to ASIC, it is suspected that Colthup utilized the funds in question to settle ACCE’s debts, buy cryptocurrencies on behalf of others, or possibly a mix of these activities.
The company, which went bankrupt in September 2022, is now facing new allegations. Creditors have been trying to retrieve a sum of approximately $16 million from the company ever since.
The securities authority of the country announced that Grant Colthup was made aware of a fraud allegation during a court hearing at Ipswich Magistrates Court in Queensland, Australia on October 21st. The case pertaining to Colthup has been postponed until December 16, 2024.
Under Queensland’s Criminal Code of 1899, specifically section 408C, Colthup faced a possible imprisonment term of up to 20 years.
As a crypto investor, I observed that the value of Bitcoin was dancing between roughly $18,890 and $24,580 when I decided to make my significant investment of $1.47 million. According to CoinGecko’s data, this price range is what was happening at the time of my purchase.
Currently, Bitcoin is being traded at approximately $67,460. This means that one Bitcoin could potentially range in value from about $4 million to $5.24 million.
From May 2019 until its administration in September 2022, the company Mine Digital managed a cryptocurrency trading platform, providing multiple trading services throughout that period.
Initially, it was found that ACCE had control over just $20,000 in assets, which is significantly lower than the $16 million that creditors alleged, as reported by the Australian Financial Review on October 13, 2022.
Approximately two months following the December 1, 2022, collapse of a cryptocurrency platform, PKF’s Business Recovery and Insolvency Partner, Brad Tonks, was assigned as the liquidator by ACCE.
In the following month of January 2023, I found myself preparing a lawsuit against Colthup. The reason for this legal action was to obtain a court order compelling Colthup to reimburse creditors who were owed approximately $16 million, as reported by the Australian Financial Review (AFR).
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2024-10-22 06:53