NGS Crypto in happier times

NGS Crypto Pty Ltd is an Australian digital asset investment firm based in Sydney that was founded in 2017. The company specializes in providing investment services related to cryptocurrencies and blockchain technology. The company's senior executives include Brett Mendham, who serves as the Managing Director, and Ryan Brown, who is the Chief Operating Officer.

In March 2023, the Australian Securities and Investments Commission (ASIC) announced that it had initiated civil penalty proceedings against NGS Crypto, Mendham, and Brown for alleged breaches of financial services laws. The regulator accused the firm and its executives of providing financial services without holding an Australian Financial Services License (AFSL), which is a legal requirement for any entity or individual that provides financial services to clients in Australia.

According to ASIC's statement, NGS Crypto had offered and sold cryptocurrency-related products to retail clients without holding an AFSL or any other required authorization. The regulator also alleged that Mendham and Brown were knowingly involved in the provision of these services, making them liable for the company's breaches.

ASIC's announcement came after a series of investigations into the firm's operations, which began in late 2022. The regulator's concerns were raised due to reports from several investors who had lost significant sums of money investing with NGS Crypto. The investors claimed that they had been promised high returns on their investments in various cryptocurrencies, but instead suffered significant losses.

NGS Crypto had previously marketed itself as a professional investment firm that used advanced technology to identify and invest in promising cryptocurrencies. The company claimed to have a team of experts who used data analysis and machine learning algorithms to identify profitable opportunities in the cryptocurrency market. However, ASIC's investigation found that the firm did not have the necessary licenses or authorizations to provide financial services to retail clients.

The civil penalty proceedings against NGS Crypto, Mendham, and Brown are ongoing, and it is unclear at this time what penalties the defendants may face if found guilty of the alleged breaches. ASIC has stated that it will seek to ban the defendants from providing financial services in Australia if they are found to have breached financial services laws.

This is not the first time that ASIC has taken action against unlicensed cryptocurrency firms or their executives in Australia. In recent years, the regulator has stepped up its efforts to crack down on unlicensed activities in the cryptocurrency sector, as concerns about investor protection and market integrity have grown.

NGS Crypto's case serves as a reminder to investors to be cautious when dealing with unlicensed firms or individuals offering financial services related to cryptocurrencies or other digital assets. It is important for investors to ensure that any firm or individual they deal with holds the necessary licenses and authorizations to provide financial services in their jurisdiction. Investors should also be aware of the risks involved in investing in cryptocurrencies and seek professional advice before making any investment decisions.