Originally published on: October 22, 2024
The ex-CEO of Mine Digital, a prominent Australian cryptocurrency exchange, is under fire for allegedly misappropriating $1.47 million from a customer who intended to convert the funds into Bitcoin.
According to the Australian Securities and Investments Commission (ASIC), the customer transferred $1.5 million to ACCE Australia but did not receive the corresponding amount of cryptocurrency. The regulatory body claims that the former CEO, Grant Colthup, either diverted the funds to settle ACCE’s debts, purchased cryptocurrencies for other parties, or a combination of both.
These allegations come in the wake of Mine Digital’s collapse in September 2022, with creditors attempting to recover a total of $16 million owed by the company.
Grant Colthup has been charged under section 408C of Queensland’s Criminal Code 1899, a criminal offense that carries a maximum prison sentence of 20 years. The case against Colthup has been adjourned until December 16, 2024.
At the time of the alleged embezzlement, Bitcoin was trading between $18,890 and $24,580. With the current value of Bitcoin around $67,460, the stolen Bitcoin would now be worth between $4 million and $5.24 million.
Mine Digital, which operated as a crypto exchange platform from May 2019 to September 2022, faced early scrutiny when it was discovered that only $20,000 in assets were under ACCE’s control, significantly less than the $16 million claimed by creditors.
Brad Tonks, a Partner at the insolvency firm PKF, was appointed as ACCE’s liquidator following Mine Digital’s collapse. PKF subsequently announced plans to take legal action against Colthup to recover the $16 million owed to creditors.
In the ever-evolving world of cryptocurrency, incidents like this highlight the importance of due diligence and security measures when engaging in digital asset transactions. Stay informed on the latest developments in the crypto space to protect your investments.
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