Earlier this week, the Federal Court made consent orders granting the Australian Securities ans Investments Commission’s application for an interim injunction 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.
The NGS Companies consented to the Interim Injunction. ASIC sought the Interim Injunction 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 ASIC in the proceeding.
The matter is next listed for a case management hearing on 23 October 2024.
In April, ASIC commenced civil proceedings against blockchain mining companies NGS Crypto Pty Ltd, NGS Digital Pty Ltd and NGS Group Ltd (NGS Companies) and the sole directors of those respective companies, Brett Mendham, Ryan Brown and Mark Ten Caten.
On 10 April 2024, the Federal Court made orders appointing Anthony Connelly, Kathy Sozou, and Jamie Harris of McGrathNicol as receivers over the digital currency assets of the NGS Companies and of Mr Mendham, Mr Ten Caten and Mr Brown.
ASIC applied for these orders because it is concerned that the digital assets of investors, which are invested in the blockchain mining products offered by the NGS Companies, are at risk of dissipation and considered the appointment of a receiver was the best way to protect the assets.
