Brisbane homebuilder Privium invested $3m in Qoin crypto before going liquidated

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Before going to the wall, a construction company in Queensland spent millions on cryptocurrency and transferred half a million dollars to a Christian charity.

A Queensland-based construction company took a $3 million cryptocurrency punt before going bankrupt, as well as transferring more than half a million dollars to a Christian charity.

The Privium group of companies, which mainly built houses, went into liquidation at the end of December, a month after the appointment of voluntary administrators in the ailing company.

Liquidators FTI Consulting, in a report published this weekconcluded that Privium was likely trading while it had been insolvent since late August.

Its collapse left hundreds of homes unfinished and their future occupants unsure where to turn.

At the time of the collapse, Privium chief executive and founder Rob Harder said he was “deeply sorry”.

“I understand that this is not the news you wanted to hear and that it is going to create real difficulties,” he said in the email, reported the ABC.

Founded in 1999, Privium has built homes in Queensland, New South Wales and Victoria under two brands. Privium was the banner for luxury and custom-built homes, while Impact Homes was for properties aimed at investors and first-time buyers.

Many of the group’s companies were registered at an address in Rochedale, a southern suburb of Brisbane.

Privium companies have faced difficulties due to the pandemic, in particular the long lockdowns in Victoria which have limited the number of people allowed to work on construction sites. The tightening of loan conditions also had an impact.

However, directors said other factors likely led to the companies’ downfall.

One was an investment of around $3 million in cryptocurrency.

$3 million crypto madness

Privium had acquired Bartercard dollars and converted them into a cryptocurrency called Qoin.

Founded in 2019, Gold Coast-based Qoin is part of the same company as Bartercard.

“Based on our investigations into the nature of Qoin, it is evident that it is a highly illiquid asset whose sale is limited to a few hundred dollars per day,” the report said.

“Therefore, unleashing this asset is extremely difficult, if not impossible.”

The directors went on to say that it was “possible that a breach of certain directors’ obligations may have resulted from this transaction.”

Payments to Christian pastoral charity

It’s not just crypto investing that has raised eyebrows.

In 2021, four payments were made by Privium to a Christian charity called Love Your World totaling over $530,000.

A special dividend of $50,000 from Privium to Love Your World was also paid in 2019.

the registration for Love Your World on the Australian Government Charities Register states that he undertakes “pastoral work as a service pastor and subsequently as a stewardship pastor to further the local church.” The organization’s website no longer seems to be working.

The charity’s address, in the Brisbane suburb of Rochedale, is the same as many Privium businesses.

The register says that one of the directors of the charity is Rachel Harder.

the Mail Mail reported that she was the wife of Privium founder Rob Harder.

The newspaper further stated that the Harders were members of Hillsong Church. There is no suggestion Hillsong had any connection to Privium or the charity.

The directors said the transactions with Love Your World “could constitute potential breaches of directors’ duties.”

The report also revealed that three payments from an entity called “Open Gold” to Privium totaling $20 million were made on June 29, 2020.

On the same day, an identical amount was donated to an organization called “The Promise”.

Mr Harder had told the directors that the transaction was to raise capital and develop a “digital unitary trust” called Open Gold.

The administrators said they had sought further clarification on these transactions because so far “the explanation was insufficient”.

The report says that at this point it is unlikely there will be enough funds left in the company to pay a dividend to senior or unsecured creditors. The report recommended further investigations into Privium.

News.com.au has contacted Ms Harder for comment. the Mail Mail tried to contact Mr. Harder but without success.

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