Ex-CEO of Mine Digital Charged with $1.47 Million BTC Fraud

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Key Takeaways

Probe revealed that Colthup may have used the investor’s funds to pay off ACCE Australia’s debts or to purchase crypto for other people.
Creditors have been seeking to recover around $16 million owed by the company.

Grant Colthup, the former CEO of Mine Digital, has been charged with fraud after allegedly misusing $1.47 million (AU$2.2 million) from a Bitcoin investor. On October 21, 2023, the Australian Securities and Investments Commission (ASIC) revealed the charges stating that the investor transferred $1.5 million funds to ACCE Australia, Mine Digital’s parent but the expected Bitcoin transaction never took place.

Colthup, who led ACCE Australia during his time as CEO of Mine Digital, appeared in court earlier this week. The court has set the next hearing for December 16, 2024, giving both the prosecution and defense time to prepare their cases.

ASIC’s investigation is hinting that Colthup may have used the investor’s funds to pay off ACCE Australia’s debts or to purchase crypto for other people. These allegations come as part of a broader inquiry into the activities of Mine Digital, which closed its doors in September 2022. Since then, creditors have been seeking to recover around $16 million owed by the company.

At the time of the alleged theft, Bitcoin’s value ranged between $18,890 and $24,580. Given the current price of Bitcoin, which sits around $66,800, the value of the stolen funds today could range between $4 million and $5.2 million, emphasizing the scale of the fraud.

Mine Digital was a crypto exchange that operated from May 2019 until its collapse in 2022. Despite initially attracting substantial investment, the exchange faced financial troubles that led to its downfall. When the company went into administration, it was discovered that it had just $20,000 in assets, far below the $16 million claimed by creditors.