30s Summary
Ex-CEO of crypto exchange Mine Digital, Grant Colthup, has been accused of misappropriating $1.47 million intended for Bitcoin purchases. The Australian Securities and Investments Commission (ASIC) suggest the money was used to pay off debts or buy cryptocurrency for others. If found guilty, Colthup could face a 20-year prison sentence. Mine Digital collapsed in September 2022, with creditors claiming they are owed $16 million. A liquidator was appointed within two months of the collapse, and Colthup may face a lawsuit to recover funds.
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The ex-CEO of Aussie crypto exchange, Mine Digital, is in hot water over fraud allegations. He’s being accused of nicking about $1.47 million from a customer who wanted to buy Bitcoin with it. The Australian Securities and Investments Commission (ASIC) said the client paid ACCE Australia the money, but never got any Bitcoin in return.
ASIC reckon that the former big boss, Grant Colthup, may have used the cash to pay off ACCE’s debts or to buy cryptocurrency for other people. It’s the latest in a string of drama for Mine Digital which went under in September 2022. Ever since, people have been trying to get back $16 million they say they’re owed by the firm.
After the fraud charges were announced, Colthup’s legal case was put on hold until December 16th, 2024. This is based down in Ipswich, Queensland, our local magistrates court. If found guilty, he could be facing a 20-year jail term.
The price of Bitcoin was between $18,890 and $24,580 when ASIC claimed the money was used for the Bitcoin purchase. According to CoinGecko data, if the customer had received their Bitcoin, it’d now be worth between $4 million and $5.24 million!
Mine Digital used to run a crypto exchange platform and trading services from May 2019 up until it went bust in September 2022. An early investigation showed that only $20K worth of assets were left in ACCE’s hands. This is a far cry from the $16 mil that creditors are after.
Just two months after the platform fell apart, a liquidator was appointed to handle ACCE’s mess. And then, just a month after that, there were reports they were gunning to sue Colthup to get some cash back for the creditors. It’s quite the crypto saga.
Source: Cointelegraph