- Grant Colthup, former CEO faces a fraud charge for allegedly stealing $1.5M from a customer.
- The court has adjourned the case to December 16, 2024.
Grant Colthup, the former CEO of Mine Digital, faces serious fraud charges for allegedly stealing $1.5 million from a customer. This transaction occurred just two months before the firm collapsed in September 2022. The Australian Securities and Investments Commission (ASIC) announced the charges on October 21, detailing a transaction that took place in July 2022.
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 https://t.co/tHrFgaHiSD
— ASIC Media (@asicmedia) October 21, 2024
The ASIC claims that a customer paid A$2.2 million (approximately $1.47 million) to ACCE Australia, the Mine Digital entity, in exchange for Bitcoin. However, the customer never received the cryptocurrency. ASIC alleges that Colthup either used the funds to pay ACCE’s liabilities or purchased cryptocurrency for others.
Furthermore, this case highlights ongoing concerns surrounding Mine Digital. Since its collapse, creditors have sought to recover approximately $16 million from the firm. An early investigation revealed that only A$20,000 in assets were reportedly under ACCE’s control, far short of the claims made by creditors, raising significant concerns about the company’s financial practices.
Court Proceedings and Liquidator’s Findings
In a court hearing on October 21, 2024, Colthup was informed of the fraud charge under section 408C of Queensland’s Criminal Code 1899. This section carries a maximum prison sentence of 20 years. The Magistrates Court in Ipswich has adjourned the case to December 16, 2024, allowing time for further proceedings.
Additionally, the liquidator for ACCE Australia, Brad Tonks of PKF, was appointed shortly after the firm entered administration. Reports indicate that Tonks sought legal action against Colthup in January 2023, aiming to recover funds for the creditors left chasing $16 million.
Tonks found that the company had not recorded client investments in cryptocurrencies on its balance sheet. He also discovered that, before the collapse, significant digital assets were likely transferred to accounts with limited records. This raises further concerns regarding the management of funds and the overall integrity of the exchange.
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