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The former CEO of Australian crypto exchange Mine Digital is facing one count of fraud for allegedly stealing $1.47 million (2.2 million Australian dollars) from a customer who sought to swap the funds for Bitcoin.
In a statement on Oct. 21, the Australian Securities and Investments Commission (ASIC) <a data-ct-non-breakable="null" href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-231mr-ex-ceo-of-crypto-exchange-mine-digital-charged-with-fraud/" rel="nofollow noopener" target="_blank" text="null" title="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-231mr-ex-ceo-of-crypto-exchange-mine-digital-charged-with-fraud/">said</a> the customer paid $1.5 million to Mine Digital’s parent, ACCE Australia, but never received the crypto.&nbsp;
<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/australia-crypto-firms-financial-service-license" rel="null" target="null" text="null" title="null">ASIC alleges</a> that Grant Colthup used the funds to pay ACCE’s liabilities, purchase cryptocurrency for others, or a combination of both.
It’s the latest accusation against the firm, which collapsed in September 2022. Since then, creditors have sought to recover $16 million.&nbsp;
ASIC said Colthup was informed of the fraud charge in a hearing at the Magistrates Court in Ipswich, Queensland, Australia, on Oct. 21, and the case was adjourned to Dec. 16. 
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 <img alt="Ex-CEO of Mine Digital stole $1.5M from Bitcoiner, regulator alleges" src="https://s3.cointelegraph.com/uploads/2024-10/0192b241-86b3-7387-b1a6-e0f1b8d4961a" title="">
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 Source: <a data-ct-non-breakable="null" href="https://x.com/asicmedia/status/1848510390486900809" rel="null" target="null" text="null" title="https://x.com/asicmedia/status/1848510390486900809">ASIC</a>
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Colthup was <a data-ct-non-breakable="null" href="http://classic.austlii.edu.au/au/legis/qld/consol_act/cc189994/s408c.html" rel="null" target="null" text="null" title="null">charged</a> under section 408C of Queensland’s Criminal Code 1899, which carries a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/changpeng-zhao-sam-bankman-fried-sentences-prison" rel="null" target="null" text="null" title="null">maximum prison sentence</a> of 20 years.
Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="nofollow noopener" target="_blank" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) fluctuated between $18,890 and $24,580 when ASIC says the customer tried to make the Bitcoin purchase, CoinGecko <a data-ct-non-breakable="null" href="https://www.coingecko.com/en/coins/bitcoin" rel="null" target="null" text="null" title="null">data</a> shows.
With <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/how-to-trade-cryptocurrencies-the-ultimate-beginners-guide" rel="null" target="null" text="null" title="null">Bitcoin currently trading</a> around $67,460, that Bitcoin would now be worth between $4 million and $5.24 million.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/michael-saylor-u-turn-self-custody-sparks-criticism" rel="null" target="null" text="null" title="null">Bitcoiners slam Saylor for throwing weight behind ‘too big to fail’ banks</a>
Mine Digital operated a crypto exchange platform and offered various trading services between May 2019 and September 2022 — when it entered administration.
An early investigation revealed that only $20,000 worth of assets were under ACCE’s control — far short of the $16 million claimed by creditors, the Australian Financial Review (AFR) <a data-ct-non-breakable="null" href="https://www.afr.com/technology/alarming-deficiency-mine-digital-creditors-fret-on-missing-millions-20221004-p5bn5f" rel="null" target="null" text="null" title="null">reported</a> on Oct. 13, 2022.
PKF’s business recovery and insolvency partner, Brad Tonks, was appointed ACCE’s liquidator a little over two months after the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-ftx-collapse-regulatory-evolution" rel="null" target="null" text="null" title="null">cryptocurrency platform collapsed</a> on Dec. 1, 2022.
The AFR reported that PKF was reportedly looking to sue Colthup in January 2023, seeking a court order for Colthup to compensate creditors left chasing $16 million.
Magazine:<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-etf-coinbase-honeypot-hackers-government-trezor-ceo/" rel="null" target="null" text="null" title="null"> Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO</a>

Ex-CEO of Mine Digital stole $1.5M from Bitcoiner, regulator alleges

Cointelegraph

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