ob体育 is conducting an investigation into blockchain mining companies NGS Crypto Pty Ltd, NGS Digital Pty Ltd and NGS Group Limited (a company domiciled in Hong Kong) (together, the NGS Companies) and their officers, employees, agents, representatives, or associated entities.
As at 1 July 2024, NGS Crypto鈥檚 website redirects to the website .
On 12 August 2024, NGS Digital Pty Ltd was placed into liquidation.
ob体育 will update this webpage when important steps take place in relation to this matter.
Updates
Federal Court Proceedings
On 9 April 2024, ob体育 applied for interim ex parte orders in the Federal Court to secure the digital currency assets of the NGS Companies and their directors, Mr Mark Ten Caten, Mr Brett Mendham and Mr Ryan Brown as well as travel restraint orders in relation to Mr Mendham (24-073MR).
ob体育 also seeks in the proceeding:
- Declarations that the NGS Companies have contravened s 911A of the Corporations Act by carrying on a financial services business without an AFSL,
- Injunctions against the NGS Companies, and
- Orders winding up NGS Group Ltd, NGS Crypto Pty Ltd and the unregistered managed investment scheme ob体育 alleges that NGS Group Ltd operated.
On 2 December 2024, the Federal Court listed the proceedings for a final hearing on 22, 23 and 24 July 2025.
The matter will be listed for a case management hearing after 9 May 2025.
Winding up orders
On 29 November 2024, ob体育 amended its claim to seek orders winding up NGS Group Ltd, NGS Crypto Pty Ltd, and the unregistered managed investment scheme ob体育 alleges that NGS Group Ltd operated. ob体育 seeks orders appointing liquidators to these entities and the alleged scheme.
ob体育 has taken this step as it considers that winding up orders and the appointment of liquidators are the best way to facilitate an orderly resolution of the companies鈥� affairs in Australia and the distribution of any assets recovered by the liquidators, including those currently held by the receivers, back to investors.
The Court will determine whether to make the winding up orders following a final hearing of the matter.
ob体育's application for interim injunctions
On 9 September 2024, the Federal Court made consent orders granting ob体育鈥檚 application for interim injunctions restraining the NGS Companies from, amongst other things, carrying on a financial services business in Australia, from promoting or issuing their blockchain mining packages to any new investors, and from dealing with investor funds, until further order of the Court (Interim Injunctions).
The NGS Companies consented to the Interim Injunctions. ob体育 sought the Interim Injunctions to prevent the NGS Companies from carrying on an unlicensed financial services business until the final hearing of the matter.
The injunctions restrain the NGS Companies until further order of the Court.
The Interim Injunctions are not a finding that the NGS Companies have broken the law or that any part of their businesses contravenes the law, as alleged by ob体育 in the proceeding ().
Application to discharge asset preservation orders refused by the Court
On 25 July 2024, Justice Collier delivered judgment refusing an application by NGS Group Limited and Mark Ten Caten to set aside the orders preserving the digital currency assets of the defendants. This means that the asset preservation orders obtained by ob体育, including the appointment of the receivers, continue.
Appointment of receivers
On 10 April 2024, the Federal Court made interim orders that receivers be appointed over the digital currency assets of the NGS Companies, Mr Mark Ten Caten, Mr Brett Mendham and Mr Ryan Brown. Their role initially is to secure the digital currency assets for investors.
Anthony Norman Connelly, Katherine Sozou and William James Harris of McGrath Nicol were appointed as receivers and managers.
McGrath Nicol have with respect to their activities on 11 April 2024, 23 August 2024 and 5 November 2024.
The Interim Injunctions do not affect the appointment of the receivers.
Information for investors
Next steps for investors
ob体育鈥檚 investigation is ongoing.
People wishing to provide information to ob体育 are invited contact the investigation team via email at [email protected]. A member of the team will respond as soon as possible.
If you are an investor, you can contact the receivers by email at [email protected].
Court proceeding - useful links
- dated 10 April 2024 including freezing orders (replaced by orders dated 30 April 2024)
- dated 30 April 2024 including freezing orders (in force until further order of the Court)
- dated 9 September 2024 (in force until further order of the Court)
General information
ob体育鈥檚 Moneysmart provides more information about and .
