Gold Coast crypto-miner assets seized amid fears $60m would vanish

McGrathNicol has been appointed as receiver manager over the digital assets of NGS Crypto, NGS Digital and NGS Group, based in Hong Kong, where Brett Mendham, Ryan Brown and Mark Ten Caten are sole directors respectively of the three companies. None responded to The Australian Financial Review’s attempts to make contact. The three directors are also listed as defendants in the action brought by ASIC.

ASIC also obtained orders preventing Mr Mendham from leaving Australia.

The orders were subject to suppression order until after McGrathNicol had control of NGS’ digital assets. The court ordered the companies and their directors to hand over all books, and other records relating to digital currency assets. This includes passwords and credentials for any crypto or blockchain assets.

The court also ordered that the companies and directors be prevented from shifting any crypto offshore, or selling any digital currency assets. The orders do not prevent NGS and its directors from paying out Australian investors in its blockchain products. However, they prevent NGS from advertising, promoting, or carrying on any financial services in Australia.

Mr Mendham and Mr Ten Caten, also known as Tencaten, are also former directors and shareholders of World Binary Exchange, which was wound-up by ASIC in 2018, and Australian Global Markets, which had liquidators voluntarily appointed in 2013. Mr Brown was not a director or shareholder of either company, according to ASIC documents.

Global Markets Australia offered subscriptions to clients, providing trade recommendations for index-based binary options on various share market indices.

UK company records show Mr Ten Caten was the sole director of the now defunct World Binary Exchange UK Ltd, formerly known as Bancka One Capital Markets, whose company office was registered to a virtual office service, which allows entities to create UK companies and domain names with a London address.

According to a liquidator report from 2015, Australian Global Markets went into liquidation being owed just north of $500,000, “all of which are related to directors of the company for director drawings and intercompany loans made to directors related companies”.

The liquidator issued a demand for debts and received letters from Mr Ten Caten and Mr Mendham’s lawyers that they would declare bankruptcy if pursued. According to the liquidator, despite ASIC asking for a supplementary report, the watchdog advised it would not take any action.

“From my investigation, I have not yet discovered any form of material assets held by Mr Tencaten or Mr Mendham,” the report said.

The liquidation raised just under $1800, largely from the sale of office equipment.

The Financial Review is not suggesting wrongdoing by Mr Ten Caten or Mr Mendham related to the previous company roll-ups.

Do you know more? Email Max Mason on max.mason@afr.com from a secure non-work device