Australian Racing Officials Launch Investigation Into Phoenix Over Cryptocurrency Allegations

Australian racing authorities have launched investigations into Phoenix Thoroughbreds based on allegations the ownership group may have been involved in money laundering, according to a report in The Sydney Morning Herald Thursday. Racing NSW, Racing Victoria, and Queensland Racing Integrity Commission spokespeople all told the Herald investigations are underway.

Racing Australia chair Greg Nichols told the Herald racing authorities had concerns the group's involvement could “compromise public confidence in our sport.”

Phoenix Thoroughbreds founder Amer Abdulaziz Salman was implicated by a witness in the course of federal court proceedings in the States. The witness stated Abdulaziz had been using Phoenix Investments to launder money siphoned from OneCoin. OneCoin purported to be a type of cryptocurrency akin to bitcoin, but investors ultimately saw their capital disappear.

Phoenix Fund Investments has denied all allegations against Abdulaziz, and he has not been charged with a crime or named by prosecutors as an unindicted co-conspirator.

Phoenix Thoroughbreds came onto the American racing scene in 2017, with Abdulaziz spending huge amounts for horses at public auction on the group's behalf. Phoenix was billed by Abdulaziz as the world's first investment fund for Thoroughbreds, designed to operate like a mutual fund. Abdulaziz would later admit the fund, which had been registered in Luxembourg, had been dissolved and never had any actual investors.

French racing authorities banned the ownership group from participating in racing there, and Phoenix announced in August it would voluntarily stop racing in Great Britain. Phoenix still has active racing licenses in the United States.