Ex Digital Mine CEO Charged with $2.2 Million Fraud
ASIC Investigation Reveals $2.2Million Financial Fraud in Collapsed Mine Digital, Court Hearing Adjourned to December 2024
Ex-CEO of ACCE Australia Pty Ltd, Grant Colthup, is facing serious fraud charges following an investigation by the Australian Securities and Investments Commission (ASIC).
This information was revealed by the ASIC in a media release on their website where they revealed that they had charged the former CEO with fraud.
Ex ACCE CEO Investigation on Fraud
On October 21, 2024, Colthup was charged with one count of fraud under section 408C of Queensland’s Criminal Code 1899.
The charges stem from allegations surrounding a $2.2 million cryptocurrency transaction in July 2022, in which ASIC alleges that a customer of Mine Digital paid ACCE for Bitcoin and never received it. ASIC alleges that Colthup used the funds to pay the liabilities of ACCE and possibly to purchase cryptocurrencies.
The transaction occurred at a time when the value of Bitcoin was fluctuating between $18,890 and $24,580. Currently, with Bitcoin trading around $67,266, the value of the missing Bitcoin would now be worth between $4 million and $5 million.
Mine Digital’s Collapse
Mine Digital, the cryptocurrency exchange operated by ACCE between May 2019 and September 2022. During its period of operation, it saw significant growth in customers and service. However, the company suddenly collapsed in September 2022, leaving creditors scampering to recover about $16 million in unpaid claims.
A subsequent investigation into the company uncovered that it held only $20,000 in assets—a significant difference to the $16 million the Australian Financial Review (AFR) reported on Oct. 13, 2022.
This financial gap raised concerns about the company’s management, with Colthup becoming a key figure in the investigation.
By December 2022, ACCE had appointed PKF’s business recovery and insolvency partner, Brad Tonks, as its liquidator who then sought legal avenues to sue Colthup for the losses sustained. The fraud charge against Colthup is just a small part of a wider investigation into Mine Digital’s collapse.
Colthup, if convicted under section 408C of Queensland’s Criminal Code could face up to 20 years in prison. The case has however been adjourned until December 16, 2024.
The outcome of this case would set a crucial precedent for future digital asset exchange oversight
