An Australian court ordered the shutdown of NGS Crypto, a digital asset company, after liquidators recovered just $4.4 million of an estimated $40 million invested by the public. The court found the group operated without a license, breaching securities and consumer protection laws, posing a serious risk to investors.

NGS Crypto marketed “digital mining packages” promising fixed annual returns of up to 16% and principal return. Over 450 investors put money into the scheme using self-managed retirement accounts, garnering an appearance of legitimacy. Regulators found the company in breach of financial laws, operating without required licenses.

Justice Berna Collier ruled to wind up NGS Crypto, permanently restraining it from offering financial services. Liquidators have only identified $4.4 million in cryptocurrency, facing challenges due to price volatility and locked funds. Tracing ownership is complex as investor funds were pooled and moved across multiple wallets.

Regulators obtained freezing orders targeting NGS Crypto’s directors to prevent asset movement. Authorities seized a passport, while one director is believed to be outside Australia. The investigation was triggered by concerns of misrepresented handling of investor money. Justice Collier justified winding up the business to protect the public.

Read more at Yahoo Finance: Popular crypto retirement firm shut down by court on Christmas week