A current investigation and legal action by the Australian Securities and Investments Commission (ASIC) caused Australian crypto company NGS Crypto to change its name to “Hiddup.”
NGS Crypto, now known as Hiddup, stated on June 25 that the rebrand was due to a trademark conflict. This move coincided with ASIC’s case concerning $41 million in interest owed to investors. In April, directors Mark Ten Caten, Brett Mendham, and Ryan Brown, along with the company’s funds, had their assets frozen. Cointelegraph requested comments from Hiddup, but no immediate response was received.
ASIC filed a lawsuit against three crypto mining companies linked to NGS, including NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd, following their liquidation. The companies allegedly attracted Australians to create self-managed superannuation funds and converted the funds into digital assets for investment in blockchain mining packages with fixed returns. ASIC’s investigation revealed that over 450 Australians invested around $41 million through the NGS companies.
The financial watchdog’s claims assert that NGS companies provided financial services without a proper Australian financial services license, violating the country’s laws. ASIC is seeking interim and final injunctions to halt NGS operations without proper licensing. The Federal Court has appointed advisory and restructuring firm McGrathNicol as receivers to help creditors recover funds. Additionally, Mendham’s passport has been confiscated, and authorities are still searching for the missing $41 million.
The Australian indicated that ASIC is aware of NGS’s rebranding efforts amidst the investigation. An ASIC spokeswoman confirmed an existing investigation into the matter. In 2022, superannuation fund NGS Super sued NGS Crypto, alleging copyright infringement and enticing investors while falsely claiming an association with NGS Super’s funds. NGS Super clarified that it does not sell cryptocurrency or related products. NGS Crypto stated that the rebranding to Hiddup was due to the ongoing trademark dispute, as it sought to avoid confusion and distinguish its business. Despite court action, the company continues to advertise returns ranging from 6 to 16 percent per annum through blockchain mining on its website.