Former CEO of the cryptocurrency exchange Mine Digital accused of stealing $1.5 million from a client

The Australian Securities and Investments Commission (ASIC) has accused former CEO of the cryptocurrency exchange Mine Digital, Grant Colthup, of stealing 2.2 million AUD ($1.47 million) from a client trying to buy bitcoins.

Following an ASIC investigation, the ex-CEO of crypto exchange Mine Digital has been charged with fraud in connection with a $2.2 million transaction

— ASIC Media (@asicmedia) October 21, 2024

Given the rise in the price of digital gold, the value of coins could have increased to $4-5.24 million.

According to the document, the platform did not credit the specified funds to the client, but directed them to the repayment of obligations or the purchase of cryptocurrencies for other persons, or a combination of both.

The transaction occurred two months before the organization went bankrupt in September 2022. Mine Digital has been operating the platform since May 2019.

The investigation revealed that the recipient’s accounts at ACCE Australia held assets totaling $20,000, far less than the $16 million in creditors’ claims.

The maximum penalty for the alleged Coltup’s fraud is 20 years in prison.

The hearing will take place on December 16, 2024.

Recall that in October, a court in Las Vegas sentenced 86-year-old former California lawyer David Keagle to a five-year probationary term for organizing a cryptocurrency pyramid scheme. The defendant will pay ~$13.95 million in restitution.

Earlier in New York, IcomTech Ponzi scheme organizer David Carmon was sentenced to 10 years in prison.