The Australian Securities and Investments Commission has disqualified Ashod Ohan Balanian from managing corporations for five years, the maximum period available, over his role in three failed companies that operated a cryptocurrency fund.
The ban, announced on Thursday, runs until 30 March 2031.
ASIC said it imposed the maximum term after finding that Balanian, of North Ryde, New South Wales, showed “a willingness to ignore his obligations” as a director of Digital Commodity Assets Pty Ltd, DCA Capital Pty Ltd and Polychain Pty Ltd. The three companies were linked to the Digital Commodity Assets Fund, or DCA Fund.
Compliance failures
The regulator’s findings fall into two categories. First, Balanian failed to cooperate with liquidators, not lodging required reports, not providing requested documents and showing what ASIC called an unwillingness to assist in understanding the affairs of the companies.
Second, ASIC found he failed to ensure basic regulatory compliance while the companies were operating. That included not registering the DCA Fund as a managed investment scheme, not ensuring DCA Capital held an Australian financial services licence or was an authorised representative, not lodging tax returns and business activity statements, and not keeping adequate books and records at Polychain.
ASIC said the conduct was “particularly egregious” given the companies were acting as trustee or investment manager of a managed investment scheme.
The decision relied on supplementary reports from KordaMentha liquidators Scott Langdon, Jennifer Nettleton and John Mouawad, who handled Digital Commodity Assets and DCA Capital, and from Anthony Elkerton of DW Advisory, liquidator of Polychain.
The disqualification is an administrative ban, not a criminal conviction. Balanian has the right to seek review at the Administrative Review Tribunal.
