Australian Crypto Firm NGS Rebrands Amid Legal and Financial Turmoil

Australian crypto company NGS Crypto has rebranded to Hiddup amid an investigation by the Australian Securities and Investments Commission (ASIC) over $41 million in alleged interest owed to investors. Directors' assets were frozen, and the company's funds seized. The ASIC lawsuit accuses NGS of operating without a license, breaching Australian laws, and misusing investors' funds. Hiddup has not responded to Cointelegraph's inquiry, and the court-appointed receivers are assisting creditors in recovering losses.

The Australian crypto company, Hiddup (formerly NGS Crypto), has recently undergone a rebranding amidst an ongoing investigation by the Australian Securities and Investments Commission (ASIC) [1]. The investigation accuses Hiddup of operating without a license, breaching Australian laws, and misusing investors' funds, resulting in an alleged $41 million in interest owed to them [1].

The ASIC's investigation, which began in April 2024, led to interim ex parte orders in the Federal Court for the securing of Hiddup's digital assets and those of its directors, Mark Ten Caten, Brett Mendham, and Ryan Brown [1]. The court also appointed receivers to secure the assets for investors and prevent the directors from traveling outside of Australia [2].

The alleged contraventions of the Corporations Act by Hiddup include carrying on a financial services business without an Australian Financial Services License (AFSL) [1]. The matter is currently listed for case management hearings on June 12 and July 16, 2024, with an interim injunction hearing scheduled for July 29 [1].

Investors who wish to provide information to the ASIC regarding this matter can contact the investigation team via email at NGS.Investigation@asic.gov.au [1].

ASIC's investigation into Hiddup is not an isolated incident. In April 2024, the regulator also announced penalties for audit issues and actions against other blockchain mining companies [2].

It is important for investors to exercise caution and verify the legitimacy of any investment opportunities, especially those involving digital assets. ASIC's Moneysmart provides more information on investment scams and what to do if you have been scammed [1].

References:
[1] ASIC. (2024, April 9). NGS crypto companies. Retrieved April 26, 2024, from https://asic.gov.au/about-asic/news-centre/key-matters/ngs-crypto-companies/
[2] Grip. (2024, April 12). ASIC Roundup: A$206,250 Penalty for Audit Issues and Action Against Blockchain Mining Companies. Retrieved April 26, 2024, from https://www.grip.globalrelay.com/asic-roundup-a20625-penalty-for-audit-issues-and-action-against-blockchain-mining-companies/