NGS Crypto in happier times

NGS Crypto Pty Ltd, an Australian digital asset investment firm based in Sydney, and two of its senior executives, Brett Mendham and Ryan Brown, have faced civil penalty proceedings from the Australian Securities and Investments Commission (ASIC) for allegedly providing financial services without holding an Australian Financial Services License (AFSL).

ASIC is the primary regulator of financial services in Australia, and it is required by law that any entity or individual providing financial services to the public must hold a valid AFSL or be exempt from the requirement.

According to ASIC's statement issued on March 16, 2023, NGS Crypto, through its directors Brett Mendham and Ryan Brown, offered and sold cryptocurrency-related financial products to retail clients without holding an AFSL. The alleged conduct took place between March 2021 and October 2022.

ASIC's statement further revealed that NGS Crypto marketed itself as a "digital asset investment house" and claimed to provide "institutional-grade" cryptocurrency trading services to retail clients. The company reportedly used social media platforms to promote its services and attracted a significant number of investors.

However, ASIC alleges that NGS Crypto did not hold an AFSL during this period and therefore was not authorized to provide financial services to retail clients. The regulatory body also alleges that Mendham and Brown were knowingly involved in the provision of these services without an AFSL.

ASIC's statement further noted that the alleged conduct constitutes a breach of various provisions of the Corporations Act 2001 (Cth) and the ASIC Act 2001 (Cth). The regulator is seeking penalties against NGS Crypto, Mendham, and Brown for their alleged contraventions of these laws.

NGS Crypto and its executives have not yet responded publicly to ASIC's allegations. The matter is currently before the courts, and it remains to be seen what penalties, if any, will be imposed on the company and its executives.

It is important to note that this is an ongoing legal matter, and the information provided here is based on ASIC's statement and other publicly available information. The situation may change as more details emerge, and readers are encouraged to follow developments closely for updates.

Investors who have dealt with NGS Crypto or have any concerns about their investments are advised to contact ASIC's Investor Support Line on 1300 300 630 or visit ASIC's MoneySmart website for more information.

This is a developing story, and we will continue to provide updates as more information becomes available. Stay tuned for further details.