Mine Digital Ex-CEO Faces $1.5M Misappropriation Claim
The former CEO of the Australian cryptocurrency exchange Mine Digital is facing a fraud charge for allegedly embezzling $1.47 million (2.2 million Australian dollars) from a customer who intended to exchange the funds for Bitcoin.
In a statement released on Oct. 21, the Australian Securities and Investments Commission (ASIC) indicated that the Mine Digital customer paid $1.5 million to ACCE Australia but never received the cryptocurrency in return.
ASIC alleges that Grant Colthup either utilized the funds to settle ACCE’s debts, acquired cryptocurrency for other individuals or did a combination of both.
These accusations are the latest against the firm, which went bankrupt in September 2022. Since that time, creditors have been attempting to reclaim $16 million from the company.
The country’s securities regulator informed Colthup of the fraud charge during a hearing at the Magistrates Court in Ipswich, Queensland, on Oct. 21, and the case has been rescheduled to Dec. 16, 2024.
Colthup was charged under Section 408C of Queensland’s Criminal Code 1899, which could result in a maximum prison sentence of 20 years.
During the time ASIC alleges the customer made the $1.47 million Bitcoin purchase, Bitcoin’s price ranged between $18,890 and $24,580, according to CoinGecko data. With Bitcoin currently trading at around $67,460, that amount of Bitcoin would now be worth between $4 million and $5.24 million. Read More-https://voiceofleaders.com/a-regulator-claims-that-the-ex-ceo-of-mine-digital-diverted-1-5-million-from-a-bitcoin-investor/