Australian crypto company NGS Crypto has rebranded to “Hiddup“ amid an ongoing investigation and legal action by the Australian Securities and Investments Commission (ASIC). Despite facing significant legal challenges, the company continues to advertise returns of 6 to 16% per annum through blockchain mining on its website.
ASIC Investigation and Legal Action
ASIC has launched a lawsuit against three crypto mining companies associated with NGS: NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd. These companies have collapsed into liquidation, prompting ASIC to allege that they provided financial services without the necessary Australian financial services license. The watchdog’s preliminary investigation revealed that over 450 Australians invested approximately $41 million through these entities.
In response to the investigation, ASIC has frozen the assets of the company’s directors—Mark Ten Caten, Brett Mendham, and Ryan Brown—as well as the firm’s funds. The Federal Court has appointed advisory and restructuring firm McGrathNicol as receivers to assist creditors in recovering their investments. Additionally, Mendham’s passport has been seized, and authorities are actively searching for the missing $41 million.
Rebranding Amid Controversy
On June 25, NGS Crypto announced its rebranding to Hiddup, citing a trademark dispute as the reason. This rebrand comes during the legal turmoil with ASIC, which is aware of and investigating the rebranding efforts. The company claims the name change is to avoid confusion and differentiate itself from NGS Super, a superannuation fund that had previously taken legal action against NGS Crypto for copyright infringement and misleading investors by implying an association with NGS Super’s funds.
Despite these legal battles, Hiddup continues to promote its blockchain mining packages, promising fixed returns on its website. Cointelegraph approached Hiddup for comments but received no immediate response.
Continuing Legal Proceedings
ASIC is pursuing both interim and final injunctions to prevent Hiddup from continuing its operations without proper licensing. The financial regulator aims to hold the company accountable for its unlicensed financial activities and ensure investor protection in the evolving crypto landscape.
As the investigation unfolds, the future of Hiddup remains uncertain, with significant scrutiny from regulatory authorities and ongoing efforts to recover the substantial funds invested by Australians.
