Mining Digital’s Ex-CEO Faces Embezzlement Charges Over $1.5 Million

Robert Novoski

Grant Colthup, former CEO of ACCE Australia, faces one count of fraud following an investigation by the Australian Securities and Investments Commission (ASIC).

Colthup, who appeared at the Magistrates Court in Ipswich, Queensland, was charged with embezzling $1.47 million (2.2 million Australian dollars) from a customer.

$1.5 Million Bitcoin Payout Missing

From May 2019 to September 2022, ACCE operated a digital asset exchange platform providing cryptocurrency trading services to customers under the “Mine Digital” brand.

According to a press release, the incident occurred in July 2022, when a customer paid the company $1.5 million to buy Bitcoin but never received the cryptocurrency.

ASIC alleged that instead of delivering Bitcoin, Colthup used customer funds to cover ACCE’s financial obligations and to purchase cryptocurrency for other clients.

The charge, brought under Section 408C of the Queensland Criminal Code 1899, carries a maximum sentence of 20 years in prison. The trial was postponed until December 16 2024 and will be tried by the Prosecutor’s Office.

ACCE Legal Issues

This legal development is just one of many controversies impacting ACCE and Mine Digital. The company went bankrupt in September 2022, leaving creditors struggling to recover about $16 million in funds owed.

The collapse of the Queensland-based exchange was handed over to administrator Brad Tonks of PKF in September 2022, just weeks before the collapse of US-based exchange FTX.

At the time, a local publication, the Australian Financial Review, reported that Tonks’ subsequent investigation into the company had revealed troubling financial gaps, including limited records, a disorganized balance sheet, and the existence of assets totaling only $20,000.

In its statement to creditors, PKF Partners noted that large digital assets appeared to have been transferred out of ACCE prior to administration, with records unavailable to trace the transactions.

“Investments made by clients into digital assets do not appear to be recorded on the company’s balance sheet,” Tonks reported.

Additionally, the collapse came shortly after a legal dispute with a self-managed pension fund over separate investment losses of $1.6 million in 2020. The fund alleged that ACCE did not take adequate steps to prevent a social engineering scam known as “500 Investment.”

Although the exchange defended itself in the case, the incident contributed to increasing legal challenges.

In December 2022, PKF was appointed as ACCE’s official liquidator, and Tonks initiated legal proceedings against Colthup to recover $16 million it owed creditors.

SPECIAL OFFER (Sponsored)
$600 Free Binance (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive $600 welcome offer on Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange: Welcome gift up to $2,888, use this link to register and open a free 100 USDT-M position!


.custom-author-info{ border-top:none; margin:0 pixels; margin-bottom:25px; background: #f1f1f1; } .custom-author-info .author-title{ margin-top:0px; color:#3b3b3b; background:#fed319; padding:5px 15px; font size: 20px; } .author-info .author-avatar { margin: 0px 25px 0px 15px; } .custom-author-info .author-avatar img{ border-radius: 50%; border: 2 solid pixels #d0c9c9; padding: 3 pixels; }

Source link

Leave a Comment

mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd mbd