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The former CEO of Mine Digital, an Australian cryptocurrency exchange, is now facing serious legal trouble. Grant Colthup, who once led the now-defunct exchange, has been <a 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="noopener noreferrer nofollow">charged</a> with fraud, accused of misappropriating $1.47 million (2.2 million AUD) from a customer. The customer had reportedly sent the funds to ACCE Australia with the intention of exchanging them for Bitcoin, but the cryptocurrency was never delivered.
According to the Australian Securities and Investments Commission (ASIC), Colthup allegedly diverted the funds either to pay off company liabilities or to purchase cryptocurrency for others, leaving the customer without their promised Bitcoin.
This accusation adds another layer of controversy to Mine Digital’s downfall, as creditors have been chasing $16 million in unpaid claims since the firm entered administration in September 2022.
<h2 id="span-style-font-weight-400-fraud-charge-and-legal-proceedings-begin-span">Fraud Charge and Legal Proceedings Begin</h2>
Colthup’s <a href="http://classic.austlii.edu.au/au/legis/qld/consol_act/cc189994/s408c.html" rel="noopener noreferrer nofollow">charge</a> under section 408C of Queensland’s Criminal Code 1899 could lead to a maximum prison sentence of 20 years if found guilty. The fraud charge was brought to light during a hearing at the Magistrates Court in Ipswich, Queensland, on October 21, 2024. Colthup’s case has now been adjourned until December 16, 2024, where more details will likely surface as the investigation unfolds.
ASIC’s claim that the $1.47 million payment was meant for a Bitcoin purchase highlights how the cryptocurrency’s value has fluctuated since the transaction was intended. Bitcoin <a href="https://www.coingecko.com/en/coins/bitcoin" rel="noopener noreferrer nofollow">traded</a> between $18,890 and $24,580 when the customer made the payment. This means that the funds could now be worth between $4 million and $5.24 million at current Bitcoin prices.
<h2 id="span-style-font-weight-400-mine-digital-s-troubles-continue-after-collapse-span">Mine Digital’s Troubles Continue After Collapse</h2>
Mine Digital, which offered cryptocurrency exchange services between May 2019 and September 2022, fell into administration with creditors <a href="https://www.afr.com/technology/liquidator-pursues-collapsed-crypto-exchange-ceo-s-assets-20221223-p5c8k4" rel="noopener noreferrer nofollow">seeking</a> a total of $16 million. Early investigations revealed that only $20,000 worth of assets remained under ACCE’s control—a far cry from the amount creditors were owed. This led to the appointment of PKF’s Brad Tonks as liquidator in December 2022, as efforts to recover funds continued.
This fraud case is not the only one in Australia. The Australian Federal Police (AFP) recently stated that it reported <a href="https://thecoinrise.com/australians-lose-122m-in-crypto-scams-in-a-year/" rel="noopener noreferrer nofollow">losing crypto worth about $122 million in investment scams</a> in just 12 months.&nbsp;
As a result, the Australian Securities and Investments Commission (ASIC) is expanding <a href="https://thecoinrise.com/australia-cracks-down-on-crypto-with-new-licensing-rules/" rel="noopener noreferrer nofollow">new licensing requirements for cryptocurrency firms</a>.
The post <a href="https://thecoinrise.com/former-ceo-of-australian-crypto-exchange-faces-fraud-charges-over-missing-1-47m/" rel="noopener noreferrer nofollow">Former CEO of Australian Crypto Exchange Faces Fraud Charges Over Missing $1.47M</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Former CEO of Australian Crypto Exchange Faces Fraud Charges Over Missing $1.47M

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