Key Points
- Australian crypto firm NGS Crypto has rebranded to Hiddup amidst legal issues.
- The company is facing accusations of defrauding over 450 investors and violating national regulations.
The Australian crypto company previously known as NGS Crypto has announced a strategic rebranding to Hiddup. This move is seen as a response to ongoing trademark disputes and confusion. A local media report revealed that the company was sued by NGS Super, a superannuation fund, in 2022.
NGS Super accused the crypto firm of infringing its trademark and misleading investors into thinking there was a connection between the two entities. It was later clarified by NGS Super that they do not offer crypto products or related services and are not affiliated with NGS Crypto.
Legal Disputes and Investigations
In addition to the case with NGS Super, the company is also embroiled in another legal dispute with the Australian market watchdog for allegedly violating the country’s regulations. The Australian Securities and Investments Commission (ASIC) is also currently scrutinizing the firm’s business practices within Australia.
Investigations into the company and its associated companies, NGS Digital and NGS Group, began following allegations of defrauding over 450 Australians. The financial regulator alleges 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 these companies provided financial services without the necessary Australian financial services license. They reportedly targeted Australian investors, encouraging them to invest in blockchain mining packages with fixed-rate returns. 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 participate in the offering.
Asset Seizures and Ongoing Investigations
In April, a federal judge ruled in favor of ASIC’s petition to recover the $41 million from the 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.