NGS Crypto - Case Update

The Federal Court of Australia has refused an ex parte application for judicial advice by the receivers of the digital assets of Gold Coast cryptocurrency miner NGS Crypto to un-stake the digital assets in their control (i.e., to remove them from the network) before the determination of an interlocutory application brought by NGS Group and its director for the discharge of freezing orders made by ASIC and the removal of the receivers.

The Court found that NGS Group and its director should have been given the opportunity to be heard on the application.

The Court acknowledged that it is appropriate for a receiver to apply for judicial advice or directions in matters which are likely to be controversial. However, the receivers could not refer the Court to any case where that took place in the absence of the other parties, or at such an early point in the proceedings.

Read the case here.