Grant Corsu, former CEO of Australian cryptocurrency exchange Mine Digital, appears to be facing legal trouble. According to a press release, Colthu is currently facing fraud charges for allegedly misappropriating $1.47 million (A$2.2 million) from customers.
The release revealed that the customer intended to use the funds to purchase Bitcoin, but the virtual currency was never delivered.
alleged incident
In a statement released earlier today, the Australian Securities and Investments Commission (ASIC) acknowledged the allegations against Mr Corsu, saying the funds were transferred to ACCE Australia, the parent company of his company, Mine Digital. He said it had been used for other purposes.
Former CEO of cryptocurrency exchange Mine Digital charged with fraud related to $2.2 million trade following ASIC investigation https://t.co/tHrFgaHiSD
— ASIC Media (@asicmedia) October 21, 2024
ASIC alleges Colthup used customer funds to cover ACCE's debts, purchase cryptocurrencies on behalf of other customers, or both. The release read:
From May 2019 to September 2022, ACCE operated a digital asset exchange platform and provided virtual currency trading services to its customers under the name “Mine Digital.” ASIC alleges that Mine Digital customers paid ACCE $2.2 million in exchange for Bitcoin, but never received any virtual currency in exchange. ASIC alleges Colthup used the funds to pay ACCE's debts and to purchase cryptocurrencies belonging to others.
Notably, these charges follow the collapse of Mine Digital in September 2022, with creditors seeking to recover lost funds estimated at approximately $15 million.
verdict
At the time Colsup allegedly misappropriated customer funds, Bitcoin was trading between $18,000 and just over $24,000.
Although customers did not receive their Bitcoins as expected, if they had received them as intended, the value of the cryptocurrency would have increased significantly.
If Bitcoin trades above $65,000, your investment will have tripled. On the other hand, the fact that the customer's planned investment amount may have increased significantly adds to the seriousness of the suspicions.
For now, the case against Colsup was heard in the Magistrates Court in Ipswich, Queensland, Australia, on Monday (October 21) and adjourned to December 16. If Colsup is found guilty under Section 408C, he could face up to 20 years in prison. Queensland Criminal Law 1899.
Mine Digital, once a prominent Australian cryptocurrency exchange, collapsed amid financial difficulties two years ago. The latest fraud allegations against Colthup are just one of many accusations surrounding the company since it was shut down.
In 2022, the now-defunct company was also sued for “allegedly failing to take sufficient steps to remove fraudsters from its platform.”
Featured image created with DALL-E, chat from TradingView
