Australian woman faces 10-year ban over $9.6m crypto scam

As part of a broader global crackdown on crypto-related fraud, Australia’s financial regulator has issued a major penalty over a fraudulent 15 million AUD digital asset scheme.

The Australian Securities and Investments Commission (ASIC) has banned a former financial adviser, Glenda Maree Rogan, from providing financial services for ten years after she was found guilty of misleading clients into investing nearly AUD 15 million ($9.6 million) in a crypto scam.

Between March 2022 and June 2023, Rogan deceitfully convinced her clients to invest in what she described as a “high-yield fixed-interest account.” However, in reality, the funds were transferred to her personal and company-controlled bank accounts, converted to cryptocurrency, and funneled into wallets linked to a purported UK-based trading platform already blacklisted by the commission.

ASIC stated that Rogan “made false statements to clients” and intentionally misled them about the investment’s nature, risk, and liquidity. She also falsely claimed to have been operating under her official capacity with her employer during that time.

As a result of the findings, Rogan has been banned from engaging in any financial services business or controlling an entity that provides such services for the next ten years. 

The enforcement action is part of ASIC’s broader crackdown on suspicious activity within its local sector. Earlier in May, the regulatory commission filed civil proceedings against a former crypto executive over the collapse of the now-defunct ACX Exchange, which caused losses of over 58 million AUD for several investors.

Other regulators in the region are also stepping up enforcement. The Australian Transaction Reports and Analysis Centre (AUSTRAC) recently tightened rules guiding crypto ATM service providers, in an effort to protect local investors from scams and improve anti-money laundering controls compliance.