NGS Crypto, an Australian cryptocurrency company, has rebranded itself as “Hiddup” in the midst of an ongoing investigation and legal action by the Australian Securities and Investments Commission (ASIC).
On June 25, it was reported that NGS Crypto had decided to change its name due to a trademark dispute. This comes as ASIC pursues a case regarding approximately 61 million Australian dollars ($41 million) in interest owed to investors.
In April, the company’s directors, Mark Ten Caten, Brett Mendham, and Ryan Brown, had their assets frozen along with the company’s funds.
Cointelegraph reached out to Hiddup for comment but did not receive an immediate response.
ASIC’s allegations and actions
ASIC has filed a lawsuit against three cryptocurrency mining companies linked to NGS: NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd, following their liquidation.
The companies are accused of targeting Australians to establish self-managed superannuation funds, which were then converted into digital assets to invest in blockchain mining packages with fixed returns.
ASIC’s initial investigation revealed that over 450 Australians invested around $41 million through the NGS companies.
The financial watchdog alleges that the NGS companies violated Australian laws by providing financial services without the necessary license. As part of the legal proceedings, ASIC is seeking interim and final injunctions to halt the companies’ operations until the proper licensing is obtained.
In response to these developments, the Federal Court has appointed advisory and restructuring firm McGrathNicol as receivers to assist creditors in recovering funds.
Furthermore, Mendham’s passport has been confiscated, and the authorities are continuing their search for the missing $41 million.
Related:
The Australian securities exchange approves its first spot Bitcoin ETF
Trademark dispute and rebranding efforts
The Australian reported that ASIC is aware of NGS’s attempt to rebrand itself amid the ongoing investigation. An ASIC spokeswoman stated that they are already looking into the matter.
In 2022, superannuation fund NGS Super filed a lawsuit against NGS Crypto, accusing the company of copyright infringement and luring investors by falsely claiming an association with NGS Super’s funds.
NGS Super has emphasized that it does not sell cryptocurrency or related products. NGS Crypto stated that the rebranding to Hiddup was due to the ongoing trademark dispute. NGS Crypto’s website claimed that the rebrand was intended to prevent confusion and distinguish the business.
Despite the legal action, the company continues to advertise returns ranging from 6 to 16 percent per annum through blockchain mining on its website.
Magazine:
Deepfake AI ‘gang’ drains $11M OKX account, Zipmex zapped by SEC: Asia Express
Hiddup a cryptocurrency company undergoes a rebranding process amidst a 41 million investigation and legal troubles