- Former Mine Digital CEO Grant Colthup is accused of stealing $1.47M from a customer during a Bitcoin trade
- Colthup allegedly used the funds to pay ACCE Australia’s debts or buy crypto for others
- The case continues with a court hearing set for December 16, 2024
The former CEO of Australian crypto exchange Mine Digital has been charged with fraud after allegedly pilfering $1.47 million (AU$2.2 million) from a client who tried to trade the amount for Bitcoin.
ASIC Statement
In an October 21 statement, the Australian Securities and Investments Commission (ASIC) alleged that the client had paid $1.5 million to Mine Digital’s parent company, ACCE Australia, but never received the cryptocurrency.
ASIC claimed that Grant Colthup utilized the money for paying the debts of ACCE, to buy cryptocurrencies for third parties, or for both.
This is the latest accusation against the company, which collapsed in September 2022. Since then, creditors have been trying to recover $16 million.
ASIC added that Colthup was served with the fraud charge when he appeared in Ipswich Magistrates Court in Queensland, Australia, on October 21, and the matter was adjourned to December 16.
Colthup has been charged under section 408C of Queensland’s Criminal Code 1899, which carries a maximum penalty of 20 years in prison.
Conclusions
Concluding the charges against him, Grant Colthup, the former CEO of Mine Digital, faces yet another blow to the company. The case is scheduled further for December 16, which may lead to considerable legal action against Colthup, including a sentence as long as 20 years in prison.
How do you feel about this? I think this really brings into light just how much proper regulations are necessary in the crypto space.
