Federal Court Confirms Cryptocurrency Can Be ‘Property’ Under Corporations Act

On 25 July 2024, the Federal Court in ASIC v NGS Crypto Pty Ltd (No 3) [2024] FCA 822 held that cryptocurrency can be considered “property” under section 9 of the Corporations Act 2001 (Cth) for the purposes of interlocutory relief.

ASIC commenced proceedings against NGS Crypto Pty Ltd and its affiliates over an allegedly unlicensed investment scheme. In April 2024, the Court granted urgent interim orders under section 1323 of the Corporations Act, appointing a receiver and preserving NGS’s cryptocurrency assets.

NGS later applied to set aside the orders, arguing that cryptocurrency does not fall within the statutory meaning of “property”. They relied on ASIC v Web3 Ventures Pty Ltd [2024] FCA 64, where the Court acknowledged ongoing legal uncertainty around the status of crypto assets under common law.

ASIC argued the orders were valid regardless, noting that courts in the UK and other jurisdictions have recognised crypto as property. It also referenced prior similar orders granted in Australia.

Justice Collier dismissed NGS’s application, finding that the Corporations Act definitions are broad enough to include cryptocurrency for interlocutory purposes. The ruling supports the growing view that digital assets can be treated as property under Australian law.

For more information contact Rosemary Kanan.

This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice and should not be relied upon as legal advice. Formal legal advice should be sought in relation to particular transactions or on matters of interest arising from this communication.