The homebuilder tried to avoid bankruptcy by making a $3 million cryptocurrency bet and donating to a Christian charity before it went under.
- Privium Invested $3 Million in Cryptocurrency Gold Coast While Insolvent
- Construction conglomerate went into liquidation in December
- Administrators found a huge payout to crypto Qoin after it went bust
- He also found a $500k payment to a Christian charity run by the wife of the Privium founder.
A construction company invested $3 million in a Gold Coast cryptocurrency and more than half a million in a Christian charity in a last-ditch effort before it went under.
The Privium group, a conglomerate of companies best known for building homes, went into liquidation in December, with a report on their finances finding that they had likely been operating while insolvent.
Hundreds of properties have been left unfinished due to the Privium bankruptcy, and founder and CEO Rob Harder said they are "deeply sorry."
"I understand that this is not the news you wanted to hear and that this will create real difficulties," Harder said in an email to clients last year.
A construction company invested $3 million in a Gold Coast cryptocurrency and more than half a million to a Christian charity in a last-ditch effort before it went under.
"My priority is to ensure that all houses under construction are finished and to alleviate, as much as possible, the anguish and complications."
Brisbane-based Privium, which includes property developer Impact Homes, has built homes in Queensland, New South Wales and Victoria.
The pandemic affected the group's business, with construction sites closed across the country, but particularly in Victoria due to the state's lengthy lockdown in 2020.
The administrators, however, believe that it was a series of investments that was responsible for its fall rather than Covid, citing the crypto clearing of $3 million.
He converted the cash into Bartercard dollars which were then converted into Qoin coins, a currency based on the Gold Coast.
โBased on our investigations into the nature of Qoin, it is evident that it is an extremely illiquid asset with its sale limited to a few hundred dollars per day,โ the report says.
'Consequently, releasing this asset is extremely difficult, if not impossible.'
The administrators believe that it was a "possible breach" of the duties of the directors.
However, administrators believe it was a series of investments that was responsible for its downfall rather than Covid, citing the $3 million crypto stake in Gold Coast-based coin Qoin.
They also highlighted a $530,000 donation to Christian charity Love Your World, which counts Rachel, the wife of Privium founder Mr. Harder, as one of its directors.
The sum was paid in four payments in 2021, while a special dividend of $50,000 was also paid to Love Your World in 2019.
These payments could also be in breach of the directors' duties.
The Courier Mail reported that the Harders are also members of Hillsong Church.
Administrators also uncovered three payments from a group called 'Open Gold' to Privium totaling $20 million in June 2020.
Hundreds of houses across the country were left unfinished due to the company going bankrupt while the directors poured money into crypto and Christian charities.
An identical amount was also transferred to an organization called 'The Promise' from 'Open Gold' on the same day.
Harder said it was to raise capital under a 'digital unit trust', but administrators say his 'explanation was inadequate'.
The report strongly recommends that Privium be further investigated, but says it is unlikely they will have any money left over to pay off creditors.
