Federal Court winds up NGS blockchain mining companies and unregistered scheme after unlicensed financial services findings

On 18 December 2025, the Federal Court found that blockchain mining companies NGS Group Limited, NGS Crypto Pty Ltd and NGS Digital Pty Ltd operated a financial services business without an Australian financial services licence.

The Court permanently restrained NGS Group, NGS Crypto and NGS Digital from operating a financial services business. It also ordered that NGS Group, NGS Crypto and an unregistered managed investment scheme operated by NGS Group be wound up, with liquidators appointed.

Over a six-year period, more than 450 Australians invested approximately 59 million dollars with NGS Group. Many invested retirement savings through self-managed superannuation funds that NGS Crypto encouraged them to establish.

The Court found that the NGS companies operated and promoted an unregistered managed investment scheme in blatant contravention of the Corporations Act. The regulator stated that the companies’ conduct denied investors fundamental protections intended by Australia’s financial services laws and left investors exposed to significant risk of financial losses, and that encouraging investment through self-managed superannuation funds compounded these risks by placing retirement savings outside a licensed regime.

In deciding to wind up NGS Group, the Court held that investors were harmed by the failure to hold an Australian financial services licence and found a wholly justifiable lack of confidence in the conduct and management of the company. In relation to NGS Crypto, the Court found that it carried on a business in contravention of the Corporations Act at the expense of hundreds of investors. The Court also held that after becoming aware of regulatory concerns, the controller of NGS Crypto did not rectify what the judgment described as fatal flaws in its operations, and the Court had no confidence in the conduct and management of NGS Crypto in respect of its affairs.

The Court ordered Anthony Connelly, Katherine Sozou, and William James Harris of McGrathNicol be appointed as liquidators to NGS Group, NGS Crypto and the unregistered managed investment scheme operated by NGS Group.

The regulator also outlined earlier steps taken in the matter. On 10 April 2024, the Federal Court appointed the same McGrathNicol practitioners as receivers over the digital currency assets of the NGS companies and of directors Brett Mendham, Mark Ten Caten and Ryan Brown. Those orders were sought because of concerns that investors’ digital assets were at risk of dissipation, and the Court also made orders restraining Mr Mendham from travelling outside Australia.

The regulator stated it sought winding up orders because it considered liquidation and the appointment of liquidators was the best way to facilitate an orderly resolution of the companies’ affairs in Australia and the distribution of any recoverable assets, including assets held by the receivers, back to investors. The Court agreed, stating that scheme members have the best chance of recovering at least some contributed funds through a liquidation process.

The regulator stated that its investigation into the NGS companies and their directors is continuing.

Source: 25-310MR NGS blockchain mining companies and unregistered scheme wound up, found operating without a licence | ASIC