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 alleged breaches of financial services laws. The announcement was made by ASIC on March 23, 2023.

According to ASIC's statement, NGS Crypto and its executives have been accused of providing financial services without holding an Australian Financial Services License (AFSL) or an appropriate exemption. The company reportedly offered digital asset investment services to retail clients, which includes buying, selling, and managing cryptocurrencies, without being authorized to do so under the Corporations Act 2001.

ASIC's investigation began in late 2022 after receiving reports from concerned clients about the unlicensed activities of NGS Crypto. The regulator then issued a formal warning to the company in December 2022, urging it to cease providing financial services without an AFSL or an exemption. Despite this warning, NGS Crypto continued to operate without complying with the necessary regulations.

Brett Mendham, the CEO of NGS Crypto, and Ryan Brown, the company's Chief Operating Officer, have also been named as individuals in the proceedings for their roles in the alleged non-compliance. The executives are accused of being knowingly concerned in the provision of unlicensed financial services by NGS Crypto.

ASIC's statement emphasized that providing financial services without a valid license is a serious breach of financial services laws. The regulator is seeking penalties against NGS Crypto, Mendham, and Brown for their non-compliance. The exact penalties have not yet been disclosed.

NGS Crypto's website is currently offline, and the company's social media accounts have been inactive since March 2023. The company's LinkedIn page states that it was founded in 2018 and offers "institutional-grade digital asset investment solutions."

This is not the first time that ASIC has taken action against unlicensed digital asset investment firms in Australia. In 2021, ASIC issued a warning to investors about the risks of investing in unregulated digital assets and reminded firms that they must comply with financial services laws when providing services related to these assets.

ASIC's investigation into NGS Crypto is ongoing, and further updates are expected to be provided as the case progresses. Investors who have dealt with NGS Crypto are encouraged to contact ASIC's MoneySmart Service for assistance.

This information is provided for informational purposes only and should not be considered as financial advice. It is essential to consult a financial advisor or professional for specific advice regarding your situation.