ASX refers Byte Power to watchdog for ‘investigation’ after unsatisfactory response
Cryptocurrency wannabe Byte Power Group says it has been referred to the corporate watchdog after failing to adequately respond to queries from the ASX.
On Monday morning Byte Power issued a 3300-word letter responding to 17 questions raised by the ASX about its rushed appointment of a new crypto developer and its precarious financial state.
By 5.10pm AEDT the ASX had apparently considered — and rejected — Byte Power’s response.
“Byte Power Group advises that its suspension will continue as ASX remains unsatisfied with BPG’s response to ASX’s queries and that it has referred this matter to the Australian Securities and Investment Commission for investigation,” the company told investors on Monday evening.
Among other things, the ASX had questioned the due diligence involved in the appointment of initial developer Soar Labs, followed by the prompt appointment of Noetic less than a week after Soar Labs allegedly took off with BPG’s tokens.
The ASX called out Noetic’s website as “naive” for an advanced technology solution provider, and asked for clarification that it could deliver Byte Power’s proposed cryptocurrency exchange.
Byte Power stood by its developer, citing non-disclosure agreements and personal data protection legislation.
It says it is still on track to launch the exchange in April.
BPG said it was progressing on arrangements with Australian banks and so-called “Know Your Customer” information providers as well as registering with AUSTRAC.
“Know Your Customer” refers to the process of identifying banking clients to comply with anti-money laundering laws.
BPG has about $176,000 in the bank, and estimates the value of the missing digital coins at about $5.4 million.
“Although significant, the loss, if or when it crystallises, is not expected to affect the existing business operations of the company and the net assets of the company are still expected to remain positive,” BPD assured investors this week.
“Nevertheless, the Byte Power Group may proactively consider raising capital to fund its new initiatives, including the investment in the Cryptocurrency Exchange, including via debt instruments or direct placement of shares.”
Shares in the company last traded on December 22, at 0.9c.