Panacea Capital director charged over $4.4m crypto fund

Panacea Capital director Brian Jacques Creigh has been charged with criminal offences relating to an unlicensed cryptocurrency investment fund, including dealing with proceeds of crime worth $1 million or more.

Creigh appeared in the Melbourne Magistrates' Court on October 19, facing one charge of operating a financial services business without an Australian financial services licence (AFSL) and another relating to $4.4 million investing in the business.

The Australian Securities and Investment Commission (ASIC) alleged Creigh offered a digital asset-based investment product named the Panacea Capital Cryptocurrency Investment Fund through Panacea Capital between Aprill 2021 and June 2022. The fund purportedly sought to generate returns through a diversified portfolio of digital assets.

Neither Creigh nor Panacea Capital held and AFSL or operated as an authorised representative during the period in questions ASIC said.

The case is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC. Creigh was granted conditional bail on October 19.

The charges carry maximum penalties of five years' imprisonment for operating a financial services business or being involved in a financial services business.

At the time, ASIC found Creigh had operated the crypto fund without a licence and made misleading representations to investors, including about capital guarantees, targeted returns and the fund's operations.

ASIC also found funds invested in the crypto fund were transferred overseas to an entity known as Liquid Assets Group, which turned out to be an investment scam. Investors lost approximately $7.7 million, according to the regulator.

The regulator's earlier fundings included concerns about Creigh's conduct during its investigation and his failure to respond appropriately to warning signs associated with the overseas entity.

The criminal charges are separate from the 2024 banning decision. The allegations before the court have not been determined.