The Australian Securities and Investments Commission (ASIC) has banned the investment activities of three mining companies, collectively known as the NGS Companies.

ASIC accuses Australian mining companies NGS Crypto, NGS Digital and NGS Group, as well as their directors Brett Mendham, Ryan Brown and Mark Ten Caten, of not having financial services licenses in Australia and illegal marketing of investment products based on cryptocurrency mining.

ASIC emphasized that the NGS group companies have launched a large-scale scheme to attract illegal investments in crypto-assets under promises of high interest on the mining of digital assets. According to preliminary ASIC data, the violators were able to obtain at least $41 million from more than 400 investors.

“NGS schemes encouraged investors to transfer funds from regulated superannuation funds to self-managed super funds (SMSFs) which were then converted into cryptocurrency. However, promotional materials on websites, including positive reviews and success stories, were specifically targeted at older investors with limited knowledge of crypto assets,” ASIC commented.

The country's financial market regulator obtained a court order to block digital currency assets belonging to the NGS group and their directors, as it had sufficient grounds that the funds invested by investors in illegal cryptocurrency schemes could be wasted.

Previously, the Australian Securities and Investments Commission filed a second lawsuit against the Finder crypto platform for illegal business related to the lack of a regulatory license to provide financial services in the country.