Financial Influencer 'ASX Wolf' Faces Bankruptcy

The Australian Securities and Investments Commission (ASIC) has taken legal action to obtain bankruptcy orders against the well-known financial influencer, Tyson Scholz. This move comes as a consequence of Scholz's failure to settle Federal Court costs that exceed $450,000.

Successfully securing sequestration orders in the Federal Court, ASIC has effectively declared Tyson Robert Scholz, also recognized as 'ASX Wolf,' bankrupt. The initiation of this legal process is rooted in Scholz's inability to meet the costs imposed by the Federal Court, which amounted to more than $450,000. These costs were incurred in connection with ASIC's legal proceedings that began in December 2021, with the objective of restraining Scholz from participating in or promoting any financial services business in Australia.

Following this development, ASIC has formally approached the Australian Financial Security Authority, seeking the appointment of trustees to oversee Scholz's assets.

In a preceding court ruling, the Federal Court found Scholz in violation of section 911A of the Corporations Act. This violation was linked to his operation of a financial service business without an Australian financial services license (AFSL) between March 2020 and November 2021. During this period, Scholz conducted training courses and seminars on trading securities on the Australian Securities Exchange, reaching over 118,000 social media followers. Charging subscription fees ranging from $500 to $1,500, he provided various levels of training courses. Additionally, Scholz offered individual share suggestions for a fee and access to a private chat site named 'Black Wolf Pit' on the Discord platform.

Despite the court issuing permanent injunctions in April 2023, restraining Scholz from hosting online groups with membership fees and conducting a financial services business in Australia without an AFSL, ASIC has continued its legal pursuit.

Confirming the submission of a creditor's petition against Scholz on October 18, ASIC revealed that this petition is tied to a debt of $456,296.64. This debt is owed to ASIC under a costs order dated June 22, 2023, associated with the expenses of the prior legal proceedings.

Guided by the Australian Financial Security Authority's directives, parties can seek an individual's bankruptcy if the owed amounts exceed $10,000. To substantiate this application, they must illustrate an 'act of bankruptcy' within the six months preceding the petition, with non-compliance with a bankruptcy notice being a commonly cited act. Upon presentation of the creditor's petition, the court may issue a sequestration order, formally declaring the person bankrupt.