Australian Securities and Investments Commission v NGS Crypto Pty Ltd (No 2) [2024] FCA 521

Australian Securities and Investments Commission v NGS Crypto Pty Ltd (No 2) [2024] FCA 521

It is appropriate to vary the freezing orders to permit the sixth defendant limited access to digital assets through the receivers for capped living expenses, reasonable legal costs, and to complete a property transaction, as denial of access would cause undue hardship and the balance of protection can be achieved via receiver controls.

Jurisdiction
Australia
Judgment Date
30 April 2024
Procedural Posture
Interlocutory Application / Application to Vary Ex Parte Interim Orders
Outcome
Orders varied to allow sixth defendant access to frozen assets via receivers, with specified caps for living expenses, legal expenses, and property transaction.
Legal Topics
['freezing Orders' 'asset Preservation' 'interim Orders' 'living Expenses Carve Out' 'legal Expenses Carve Out' 'property Transaction Carve Out' 'digital Currency' 'receivership']
['commercial Law' 'corporations Law' 'regulator and Consumer Protection'] ['freezing Orders' 'asset Preservation' 'interim Orders' 'living Expenses Carve Out' 'legal Expenses Carve Out' 'property Transaction Carve Out' 'digital Currency' 'receivership']

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Procedural Posture

Interlocutory Application / Application to Vary Ex Parte Interim Orders

Legal Issues

  1. 1 ['Whether orders freezing assets over digital currency should be varied to allow the sixth defendant access for living expenses, legal expenses, and completion of a property transaction' "Whether the origins of the sixth defendant's funds justify carve out of freezing orders" 'Whether risk of dissipation justifies denial of access to frozen assets']

Ratio Decidendi

It is appropriate to vary the freezing orders to permit the sixth defendant limited access to digital assets through the receivers for capped living expenses, reasonable legal costs, and to complete a property transaction, as denial of access would cause undue hardship and the balance of protection can be achieved via receiver controls.

Court Disposition

Orders varied to allow sixth defendant access to frozen assets via receivers, with specified caps for living expenses, legal expenses, and property transaction.

Orders

  • ['Pursuant to s 1323(5) of the Corporations Act 2001 (Cth) and r 39.05(a) of the Federal Court Rules 2011 (Cth), the orders made ex parte on 10 April 2024 are varied to accord with Annexure A.' 'Receivers to pay the sixth defendant $6,000 per month for ordinary living expenses.' "Receivers to pay reasonable legal...