Former CEO of an Australian crypto exchange, Grant Colthup, has been charged by the Australian Securities and Investments Commission (ASIC) for allegedly stealing AU$2.2 million (approximately US$1.5 million) from a customer. Colthup, who previously led ACCE Australia, the operator of the Mine Digital crypto exchange, has been charged with fraud and appeared in court. The case has been adjourned until December 16, 2024. The charges against Colthup followed an investigation by the regulator.
ACCE operated the cryptocurrency exchange Mine Digital between May 2019 and September 2022. The ASIC took action based on a complaint from a customer who deposited AU$2.2 million to buy Bitcoin but did not receive the cryptocurrency. The regulator alleges that Colthup used the funds to pay off ACCE’s debts and/or purchase cryptocurrency for others. Notably, ACCE went into liquidation on September 23, 2022.
This action by the ASIC against Colthup comes after a recent failed attempt to impose a penalty on Block Earner, a cryptocurrency company providing interest-bearing products. While ASIC argued that Block Earner required a financial services license, the courts ruled in favor of the company, stating that it acted honestly and without negligence. In response to this, Australian regulators are working on updated guidance that will require cryptocurrency exchanges to obtain financial services licenses.
In addition to the ASIC’s actions, an amendment to Australian legislation has expanded the ASIC’s oversight powers over various capital markets entities, including financial market operators, benchmark administrators, clearing and settlement facilities, and derivative trade repositories.