By
Chimamanda U. Martha
June 3rd, 2024
NGS Crypto, an Australian cryptocurrency company, has officially changed its name to “Hiddup” amid an ongoing investigation and legal action by the Australian Securities and Investments Commission (ASIC).
The company announced the rebranding as a strategic move to avoid confusion and address trademark disputes. According to a local media report, NGS Crypto faced legal action from the superannuation fund NGS Super in 2022.
The company accused the crypto firm of infringing on its trademark and misleading investors into believing there was an association between the two entities. NGS Super also later clarified that it does not engage with crypto products or any related services and warned users that it is not affiliated with NGS Crypto.
In addition to the case with NGS Super, NGS Crypto is involved in another legal dispute with the Australian market watchdog for violation of the nation’s regulations. The ASIC is also currently investigating the firm over its business practices within the country.
NGS Crypto Defrauded 450 Investors
The investigation into NGS Crypto and its associated companies, NGS Digital and NGS Group, began after allegations of defrauding over 450 Australians surfaced.
The financial regulator claims that these companies, along with their directors Brett Mendham, Ryan Brown, and Mark Ten Caten, orchestrated a scheme that stole up to $41 million from investors.
ASIC alleges that the NGS companies provided financial services without the necessary Australian financial services license. The companies reportedly targeted Australian investors, encouraging them to invest in blockchain mining packages with fixed-rate returns. The investors were urged to transfer funds from regulated superannuation funds to self-managed super funds (SMSFs) and then convert these funds into digital assets to enable them partake in the offering.
Court Actions and Asset Seizures
In April, a federal judge ruled in favor of ASIC’s petition to recover the $41 million from NGS Companies and hand it over to three specialists from McGrathNicol, an independent advisory and restructuring firm. The company’s directors also had their assets frozen, and Mendham’s passport was seized to prevent him from fleeing the country.
The ASIC said it is still investigating the firm to uncover the missing funds. However, despite the ongoing legal challenges, Hiddup continues to advertise returns ranging from 6 to 16 percent per annum through blockchain mining on its website. The company stated that ASIC is aware of its decision to change its name.