A $19 Million Cryptocurrencies Swindle Gets Busted by Australian Regulators

The Australian Securities and Investment Commission (ASIC) said that it had secured the order against A One Multi Services Pty Ltd for engaging in illegal conduct.

Australian Regulators Shut Down a Company that Ripped Off Millions in a Cryptocurrencies Scam

It says that A One Multi founders Aryn Hala and Heidi Walters assured investors that they would deposit their superannuation in a self-managed superannuation fund (SMSF) and subsequently loan the money to the firm. The two offered investors 20 percent yearly investment returns, investigators claimed.

AUD25 million (US$18.6 million) has been invested in A One Multi by more than 60 individuals and institutions throughout the world. However, rather than invest the money, the two founders funneled it into their own needs. ASIC says that they cashed out US$4.3 million and used it to acquire expensive automobiles and property. They also spent US$1.8 million to acquire digital currencies.

Overview of the Court Mandate 

The court ruling mandates the two to hand over the digital assets under their names to court-appointed receivers. They must also place their firm in receivership and be restricted from traveling.

Hala has already sent a fraction of the digital coins to the recipients. Hala has been ordered to hand up the last of her digital assets by the Federal Court of Queensland. The ASIC has moved rapidly to get the orders “given simplicity with crypto-assets may be transferred or transacted.”

Australia’s digital currency sector is evolving and fraudsters like A One Multi are being phased out. Just recently, a Brisbane-based legal firm claimed it was planning on bringing a $100 million class-action lawsuit against Qoin, a token project that plotted to deny investors the option to payout. Qoin was also misled about the usefulness of its token.