July 24, 2024
Latest Cryptocurrency News

Australian Crypto Firm NGS Crypto Rebrands Amid Legal Scrutiny

NGS Crypto, an Australian cryptocurrency company, has rebranded itself as “Hiddup” amidst escalating legal challenges from the Australian Securities and Investments Commission (ASIC).

NGS Crypto Rebranding Amid Legal Battles

On June 25, NGS Crypto announced the name change, citing a trademark dispute as the reason behind their decision. This development comes amid ongoing legal actions by ASIC, which is investigating approximately $41 million in interest owed to investors.

ASIC’s Legal Action and Allegations

ASIC froze assets belonging to NGS Crypto’s directors—Mark Ten Caten, Brett Mendham, and Ryan Brown—in April, alongside the firm’s funds. The commission filed a lawsuit against NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd, alleging they violated financial services laws by operating without an Australian financial services license.

The investigation revealed that over 450 Australian investors poured funds into NGS companies. They aimed to invest in blockchain mining packages promising fixed returns through self-managed superannuation funds.

Court Appoints Receivers as Investigations Continue

Responding to ASIC’s legal proceedings, the Federal Court appointed advisory firm McGrathNicol as receivers to facilitate the recovery of funds for creditors. Brett Mendham’s passport has been seized, and authorities are actively searching for the missing $41 million.

Furthermore, ASIC continues to remain vigilant amid NGS’s rebranding efforts, acknowledging the ongoing investigation into the company’s activities. The watchdog continues to pursue interim and final injunctions to halt NGS’s operations until it complies with licensing requirements.

Despite the legal challenges, NGS Crypto—now operating as Hiddup—continues to advertise significant annual returns through blockchain mining on its platform, amid the regulatory scrutiny.

Image from Medium

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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