Crypto Scam: 10-Year Ban for Financial Advisor

Crypto Scam Costs Financial Advisor 10-Year Ban

Glenda Rogan, a former financial advisor, has been banned for ten years by the Australian Securities & Investments Commission (ASIC) for her involvement in a $14.8 million cryptocurrency scam. The ban, effective June 6, 2025, prohibits Rogan from offering financial services or participating in credit activities. The Australian Financial Review first reported the news.

Rogan, previously operating in Sutherland Shire and Wollongong, promoted a scheme disguised as a fixed-income product. However, the investment was secretly based on cryptocurrencies. Over three years and two months (October 2020 to April 2023), she diverted $14.8 million of client funds into accounts she controlled, converting the majority into cryptocurrency and transferring it to wallets associated with a UK-based financial center, according to ASIC.

How the Scam Worked

Rogan targeted investors seeking stable returns, falsely presenting the cryptocurrency investment as low-risk and fixed-income. Clients trusted her, unaware their funds were being moved to accounts under her control. These funds were then converted to cryptocurrency and sent to what ASIC deemed an unreliable platform. Many investors experienced minimal or no returns, losing significant savings. ASIC's investigation revealed Rogan's negligence and failure to conduct proper due diligence.

The Financial Advice Association Australia (FAAA) also terminated Rogan’s membership in May 2024, deeming her unfit to practice. The ASIC investigation is ongoing, and Rogan may appeal the ban to the Administrative Review Tribunal.

Regulatory Response and Investor Protection

ASIC's action against Rogan highlights its commitment to combating financial misconduct, particularly within the high-risk cryptocurrency market. The regulator emphasizes the importance of verifying financial advisors' credentials through the ASIC Financial Advisers Register and urges caution when considering cryptocurrency investments. This case underscores the need for robust due diligence and the risks associated with unregulated investments.

Protect yourself: Always verify the credentials of your financial advisor and exercise extreme caution with cryptocurrency investments. Consider consulting with a qualified and independent financial advisor before making any investment decisions. At Codeum, we offer smart contract audits and security consultation to help protect your blockchain projects from similar vulnerabilities. We also provide tokenomics and security consultation, to help build a trustworthy and secure ecosystem.

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