The court also made orders restraining one sole director, Brett Mendham, from travelling outside of Australia.

According to its statement published on Friday, ASIC alleges the companies target Australian investors to invest in blockchain mining packages with fixed-rate returns, encouraging them to use funds transferred from regulated super funds to self-managed super funds (SMSFs) and then converted into cryptocurrency.

Initial investigations by ASIC suggest that more than 450 Australians invested around US$41 million through the NGS Companies.

ASIC also alleges NGS Companies were providing financial services without an Australian financial services license in contravention of section 911A of the Corporations Act.

As part of the proceedings, the regulator is also seeking interim and final injunctions against the companies, preventing them from providing financial services in Australia without a licence.

“Australians who decide to self-manage their super should consider the risks before using their SMSF to invest in crypto related investment products such as blockchain mining,” said ASIC chair, Joe Longo.

“These proceedings should also send a message to the crypto industry that products will continue to be scrutinised by ASIC to ensure they comply with regulatory obligations in order to protect consumers.”

ASIC’s investigation into the companies and their directors is continuing, although no return date has been scheduled for the proceeding at this stage.