The former CEO of Australian crypto exchange Mine Digital has been charged with fraud for allegedly stealing $1.47 million from a customer.

Details of the Charge

On October 21, the Australian Securities and Investments Commission (ASIC) announced that a customer transferred $1.5 million to ACCE Australia, Mine Digital's parent company, but never received the cryptocurrency. ASIC alleges Grant Colthup used the funds to pay ACCE’s liabilities and purchase cryptocurrency for others.

Context and Consequences

This is the latest accusation against the firm, which collapsed in September 2022. Since then, creditors have sought to recover $16 million. Colthup was informed of the fraud charge at the Magistrates Court hearing in Ipswich.

Current Status and Prospects

Colthup was charged under section 408C of Queensland’s Criminal Code 1899, which carries a maximum prison sentence of 20 years. Mine Digital operated from May 2019 until September 2022. An early investigation revealed only $20,000 under ACCE’s control, while creditors claimed $16 million. Brad Tonks was appointed ACCE's liquidator in December 2022.

The charge against the former Mine Digital executive represents a significant part of a broader investigation into financial misconduct. The legal proceedings continue.