What does a
cryptocurrency disclosure and preservation order look like?
The Federal Court of Australia made these cryptocurrency
orders on 21 October 2021 (varied on 1 November 2021)
amongst a series of interim orders. It described the orders
as being of a quite significant nature.
Asset prevention orders
10. … pursuant to section 1323 of the Corporations Act,
until further order, the First and Second and Third
Defendants, by themselves and their servants, agents and
employees are restrained from:
- removing, or causing or permitting to be removed from
Australia all or any of the Property of any of the
- selling, charging, mortgaging or otherwise dealing with,
disposing of and/or diminishing the value of all or any of
the Property of any of the Defendants;
- causing or permitting to be sold, charged, mortgaged or
otherwise dealt with, disposed of, or diminished in value,
all or any of the Property of any of the Defendants;
- without limiting the terms of sub-paragraphs (a) to (c)
above, incurring liabilities including, without limitations,
liabilities incurred either directly or indirectly, through
the use of a credit card, a credit facility, a drawdown
facility or a re-draw facility; and
- without limiting the terms of sub-paragraphs (a) to (d)
above, withdrawing, transferring or otherwise disposing of
any monies or Digital Currency available in any account with
any bank, building society, cryptocurrency exchange,
recorded in any blockchain or other financial institution
(in Australia and elsewhere), in which the Defendants have
any legal or equitable interest.
11. … without limiting the terms of Order 10 above, the
First and Second and Third Defendants are to do all things
necessary to effect forthwith, or at least before 5:00 pm AEST on …, the transfer of control over any and all Digital
Currency held by the Defendants to the Receivers, including
but not limited to providing the Receivers with:
- all relevant credentials and passwords for access to any cryptocurrency held by the Defendants, including but not
limited to, the public and private keys and / or seed string
for any soft or cold wallet held or controlled by the
- any and all authentication devices required to
facilitate access, operation or control of any cryptocurrency held or controlled by the Defendants;
- all relevant credentials and passwords for access to the
authentication devices or systems, including email, SMS or
mobile apps, that facilitate access, operation or control of
cryptocurrency held or controlled by the Defendants;
- any cold wallet device containing cryptocurrency held or
controlled by the Defendants together with that device’s
- Direct assistance in the form of instructing an ASIC
officer as to the use of the defendants’ electronic devices
to effect the transfer of the balance of Digital Currency
held or in the control of the defendants to the Receivers,
such assistance to be provided at the offices of the
plaintiff in Brisbane at a time to be agreed but no later
than 5:00pm on ….
The information to be provided by the Defendants to give
effect to this Order may, amongst other means, be provided
to the Receivers in person, by contacting the Receivers by
telephone … or by email addressed to ...
In these Orders:
Corporations Act: means the Corporations Act 2001
Digital Currency: means property, as defined under
section 9 of the Corporations Act, that is a digital
currency, virtual currency, cryptocurrency or similar.
Property: means property as defined under section
9 of the Corporations Act, including, by virtue of
subsection 1323 (2A) of the Corporations Act, any property
held otherwise than as sole beneficial owner, and for the
avoidance of doubt includes Digital Currency.
Australian Securities and Investments Commission v A
One Multi Services Pty Ltd  FCA 1297 (21 October
2021) (Derrington J)
Order_JUSTICEDERRINGTON_DOC3 (asic.gov.au) (1
ASIC Media Release 21-289MR ASIC obtains Federal Court
orders against unlicensed investment scheme A One Multi
Services | ASIC - Australian Securities and Investments
Commission (4 November 2021) is reproduced in full:
ASIC has moved to shut down unlicensed financial services
business A One Multi Services Pty Ltd (A One Multi),
which is suspected to be engaging in unlawful activity.
ASIC successfully obtained interim orders and injunctions
from the Federal Court in Queensland against A One Multi and
its Gold Coast-based directors Aryn Hala and Heidi Walters
to protect investors.
It is alleged Mr Hala represents to investors that he can
help them invest their superannuation in a self-managed
superannuation fund (SMSF) and then loan the money in
their SMSF to A One Multi. ASIC alleges Mr Hala told
investors that they would receive annual investment returns
of over 20%.
Between 1 January 2019 to 30 June 2021, more than 60
consumers deposited approximately $25 million into A One
Multi’s accounts. ASIC alleges that Mr Hala has used more
than $5.7 million of A One Multi’s money for his and Ms
Walters’ personal benefit, including through acquiring real
property and luxury vehicles in their names. In addition,
more than $2.4 million has been transferred from A One Multi
to buy crypto-assets.
On 21 October 2021, the Court found there was a need to
protect the investors, and potentially others, and made the
- an order putting A One Multi into the receivership
of John Ross Lindholm and Timothy James Michael (the
- asset preservation orders against Mr Hala, Ms
Walters and A One Multi;
- an order requiring Mr Hala to transfer crypto-assets
in his name to the receivers;
- orders requiring the disclosure of information to
ASIC against each of Mr Hala, Ms Walters and A One
Multi, including in relation to the crypto-asset
- travel restraint orders for Mr Hala and Ms Walters.
On 25 October 2021, the first tranche of crypto-assets
held in Mr Hala's name was transferred to the receivers.
On 1 November 2021, the Court made further orders
requiring the defendants to attend an ASIC office to
facilitate the transfer of remaining crypto-assets held or
controlled by the defendants to the receivers.
The orders were made pending a final hearing into the
conduct of Mr Hala, Ms Walters and A One Multi.
ASIC moved swiftly to obtain the orders given ease with
which crypto-assets can be transferred or transacted.
ASIC’s investigation into Mr Hala, Ms Walters and A One
Multi remains ongoing.
In his judgment of 21 October, 2021, Derrington J made
these comments concerning cryptocurrency accounts:
18 Of significance in this case is the large amount
of money which has been transferred into cryptocurrency
accounts. On the basis of the investigations undertaken
to date, it appears that Mr Hala may have in his
possession “Bitcoin” to a value of between $7 million to
$22 million. There is the potential that he has other
funds in other cryptocurrency accounts.
19 The significant difficulty for ASIC is that, by its
nature, cryptocurrency is easily transferred and moved
about. Moreover, it can be moved only by persons
possessed of particular codes. Presently, such codes
appear to be in the possession of Mr Hala and Ms