Australian crypto company formerly known as NGS Crypto has recently rebranded itself as 'Hiddup' amidst an active investigation and legal proceedings by the Australian Securities and Investments Commission (ASIC). On June 25, the company disclosed the name change, citing a trademark dispute as the reason behind the rebranding. This adjustment took place while ASIC was pursuing a case involving approximately 61 million Australian dollars owed to investors. The directors of the company, namely Mark Ten Caten, Brett Mendham, and Ryan Brown, had their assets frozen, alongside the company’s funds, in April.
ASIC initiated legal action against three crypto mining entities affiliated with NGS: NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd after these companies went into liquidation. Allegedly, these entities attracted Australian investors to establish self-managed superannuation funds, which were then converted into digital assets for investing in blockchain mining packages guaranteeing fixed returns. ASIC's investigation revealed that over 450 Australians collectively invested around $41 million through the NGS entities.
Accusations by the financial watchdog include violations of Australian financial laws by the NGS companies for operating without the necessary financial services license. ASIC is pursuing interim and final injunctions to halt NGS's activities until proper licensing is obtained. As part of the legal process, the Federal Court has appointed advisory and restructuring firm McGrathNicol as receivers to aid in fund recovery for creditors. Additionally, one of the directors, Brett Mendham, had his passport confiscated, and efforts are underway to locate the missing $41 million.
Amidst the unfolding events, ASIC has acknowledged NGS's rebranding efforts as the company transitions to 'Hiddup'. This move was made public in response to the ongoing investigation. In a separate legal dispute in 2022, superannuation fund NGS Super sued NGS Crypto for copyright infringement and misrepresentation to potential investors, claiming association with NGS Super's funds. NGS Super clarified that it does not deal in cryptocurrency or related products, distancing itself from NGS Crypto's operations. The rebranding to 'Hiddup' was stated to be a result of the trademark conflict to prevent confusion and establish a distinct identity for the business.
Despite legal challenges, the company persists in advertising returns ranging from 6 to 16 percent annually through blockchain mining on its platform.
