The Australian Securities and Investments Commission (ASIC) has charged former CEO of the crypto exchange Mine Digital, Grant Colthup, with embezzling 2.2 million AUD ($1.47 million) from a client attempting to purchase bitcoins.
Following an ASIC investigation, the ex-CEO of crypto exchange Mine Digital has been charged with fraud in connection with a $2.2 million transaction https://t.co/tHrFgaHiSD
— ASIC Media (@asicmedia) October 21, 2024
With the rise in the price of digital gold, the value of the coins could have increased to $4-5.24 million.
According to the document, the platform did not credit the specified funds to the client, instead using them to settle obligations or purchase cryptocurrencies for other parties, or a combination of both.
The transaction occurred two months before the organization declared bankruptcy in September 2022. Mine Digital had been operating the platform since May 2019.
The investigation revealed that the recipient of the funds, ACCE Australia, had assets worth $20,000, which is significantly less than $16 million in creditor claims.
The maximum penalty for the fraud charge against Colthup is 20 years in prison.
The case is scheduled to be heard on December 16, 2024.
In October, a court in Las Vegas sentenced 86-year-old former attorney David Keagle from California to a five-year suspended sentence for organizing a cryptocurrency pyramid scheme. The defendant will pay ~$13.95 million in restitution.
Earlier in New York, the organizer of the IcomTech crypto pyramid, David Carmona, was sentenced to 10 years in prison.