Regulatory Alerts2025-12-18
Federal Court Winds Up NGS Blockchain Mining Companies for Operating Without an AFS Licence
The Federal Court has permanently restrained NGS Group Limited and its related entities from operating a financial services business and ordered their winding up after finding they conducted unlicensed activities in blatant contravention of the Corporations Act. ASIC Deputy Chair Sarah Court emphasized that the companies disregarded Australian financial services laws by promoting an unregistered managed investment scheme to over 450 investors who contributed approximately $59 million. The Court appointed liquidators to facilitate the orderly resolution of the companies' affairs and maximize the recovery of investor funds, while noting that crypto-related products are subject to strict licensing requirements.
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