NGS Crypto: Unlicensed Australian Crypto Retirement Firm Gets Shut Down Order

Regulators just pulled the plug on another crypto cowboy.

Australia's financial watchdogs have ordered NGS Crypto—an unlicensed firm promising crypto-based retirement solutions—to cease operations immediately. The move highlights the ongoing crackdown on unregulated players trying to cash in on the digital asset boom within traditional finance structures.

The Regulatory Hammer Falls

No license, no mercy. That's the clear message from Australian authorities as they shutter NGS Crypto's operations. The firm was offering retirement investment products tied to cryptocurrencies without proper authorization—a classic case of moving faster than the regulators would prefer.

Why This Matters for Crypto

This isn't just about one firm getting caught. It's about the maturation of crypto markets. As digital assets move toward mainstream adoption, regulatory scrutiny increases proportionally. Firms that try to bypass established financial safeguards—whether in traditional markets or crypto—eventually face consequences.

The compliance lesson? Building within regulatory frameworks beats begging for forgiveness later. Especially when dealing with retirement funds—where investor protection isn't just a guideline, it's the whole point.

Looking Ahead: Cleaner Waters

Each enforcement action like this clears more space for legitimate players. The crypto industry needs fewer get-rich-quick schemes and more sustainable infrastructure. Regulatory actions, while sometimes painful in the short term, help separate serious projects from opportunistic ventures.

Remember: In finance, if something sounds too good to be true, it probably violates several regulations. The crypto space is learning what traditional finance already knows—compliance isn't optional, even when you're disrupting everything else.

Australian court orders crypto platform to halt operations

According to The Australian, NGS Crypto promoted what it called digital mining packages, telling investors that they could earn annual fixed returns of 16%, while also assuring them that their investment WOULD be returned.

The corporate regulator of Australia mentioned that those claims raised immediate red flags, noting that the court found that the company was operating without the required financial services license, breaching securities and consumer protection laws.

Justice Berna Collier ordered the companies to wind up and permanently refrain from offering financial services, citing risks to retail investors and repeated violations of corporate regulations.

The regulator highlighted that more than 450 investors put money into NGS Crypto and related entities over roughly six years. The administrators encouraged many investors to MOVE their retirement savings into the scheme using self-managed retirement accounts similar to self-directed IRAs maintained in the United States.

In her ruling, Justice Berna Collier said that the structure and conduct of the business posed grave risks to investors and warranted immediate intervention. Aside from winding up its operations, the court also permanently ordered the firm to desist from promoting financial products in the future.

Meanwhile, court-appointed liquidators from advisory firm McGrath Nicol have so far identified just $4.4 million in digital assets, a fraction of what they believed investors gave to the firm.

Liquidators face challenges in tracing funds

In filings to the court, the firm warned that recovery efforts have faced major challenges. It claimed that crypto price volatility has affected the price of some of its assets, while others appeared to have been locked in long-term staking arrangements that may not unlock until 2037.

The liquidators have also said that tracing ownership is difficult, noting that investor funds were moved to a single wallet and then across several other wallets, making attribution complex.

Regulators also obtained freezing orders last year to prevent assets from being moved. The orders were obtained against the firm and its directors, Ryan Brown, BRETT Mendham, and Mark Ten Caten.

Authorities confirmed that they had seized Mendham’s passport. Ten Caten is believed to be outside Australia, while Brown’s last known address was in Brisbane, according to court records. The orders remain in place as liquidators continue tracing the FLOW of funds.

Regulators claimed that the investigation was triggered by concerns from some investors that their funds were not being handled as represented by the company.

Justice Collier said the lack of licensing, combined with the scale of funds raised, and the nature of the promises made to investors, justified her decision. She added that the company will remain in that state for the foreseeable future as the investigators continue moves to recover funds.

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