Australian crypto company NGS Crypto has changed its name to “Hiddup” amid an ongoing investigation and legal action by the Australian Securities and Investments Commission (ASIC).
On June 25, NGS Crypto reportedly claimed they conducted the rebrand because of a trademark dispute. This happened amid an ASIC case on about 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 firm’s funds.
Cointelegraph approached Hiddup for comments but did not get an immediate response.
ASIC’s allegations and actions
ASIC launched a lawsuit against three crypto mining companies tied to NGS: NGS Crypto Pty Ltd, NGS Digital Pty Ltd and NGS Group Ltd after the companies collapsed into liquidation.
The companies allegedly targeted Australians to create self-managed superannuation funds and then converted the funds into digital assets to invest in blockchain mining packages with fixed returns.
ASIC's preliminary investigation revealed that over 450 Australians invested approximately $41 million through the NGS companies.
The financial watchdog alleges that NGS companies violated the country’s laws by providing financial services without an Australian financial services license. As part of the proceedings, ASIC seeks interim and final injunctions to prevent NGS from continuing its operations without proper licensing.
In response to these developments, the Federal Court has appointed advisory and restructuring firm McGrathNicol as receivers, which will assist creditors in recovering funds.
In addition, Mendham’s passport has been seized, and the authorities continue to search for the missing $41 million.
Related: Australian securities exchange approves its first spot Bitcoin ETF
Trademark dispute and rebranding efforts
The Australian reported that ASIC is aware of NGS’s efforts to rebrand amid the investigation. An ASIC spokeswoman said that they are already investigating the matter.
In 2022, superannuation fund NGS Super took legal action against NGS Crypto. The latter was accused of infringing copyright and violating laws by enticing investors and pretending to be associated with the NGS Super’s funds.
NGS Super emphasized that it does not sell cryptocurrency or related products. NGS Crypto said the rebranding to Hiddup was reportedly due to this ongoing trademark dispute. NGS Crypto’s website claimed the rebrand was to avoid confusion and differentiate the business.
Despite the court action, the company continues advertising 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