By Bilal Hassan
The Australian Securities and Investments Commission (ASIC) has charged Grant Colthup with fraud related to a cryptocurrency scam involving Mine Digital. Colthup is accused of misappropriating funds from a customer who paid 2.2 million Australian dollars (around $1.47 million) in July 2022 but did not receive the promised Bitcoin.
Mine Digital, officially known as ACCE Australia Pty Ltd, operated as a cryptocurrency exchange from May 2019 until its closure in September 2022. Following its shutdown, creditors have been seeking to recover $16 million in claims. ASIC alleges that Colthup, associated with Mine Digital, misrepresented the use of the customer’s funds, which were intended for Bitcoin purchase but were instead used to meet company obligations or acquire other cryptocurrencies.
In addition to the fraud charges, Colthup is facing further legal troubles. After Mine Digital’s closure, an analysis revealed significant inconsistencies in the firm’s financial declarations, with reported assets as low as $20,000 despite creditors’ losses totaling $16 million. Colthup is also being sued by the company’s liquidator in a bid to repay creditors.
Charged under section 408C of Queensland’s Criminal Code 1899, Colthup’s case highlights ASIC’s ongoing crackdown on fraudulent activities in the cryptocurrency sector. He has a court date set for December 16, 2024.
This case is part of a broader initiative by ASIC to combat cryptocurrency fraud, which has included lawsuits against several firms accused of deceiving investors. In January 2024, concerns were raised about ASIC’s oversight following a $1.3 billion crypto fraud in Australia, prompting the regulator to implement nationwide measures to protect investors in the volatile cryptocurrency market.
