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Under continuous inquiry and legal action by the Australian Securities and Investments Commission (ASIC), Australian cryptocurrency startup NGS Crypto has changed its name to “Hiddup“. The firm says the redesign results from a trademark conflict arising within an ASIC action involving around 61 million Australian dollars ($41 million) in interest owing to investors.
ASIC Legal Actions and Investigations
The assets of NGS Crypto’s directors, Mark Ten Caten, Brett Mendham, and Ryan Brown as well as the company’s money were frozen in April. Following their dissolution, ASIC sued three connected crypto mining companies: NGS Crypto Pty LTD, NGS Digital Pty LTD, and NGS Group LTD. These businesses reportedly pushed Australians to establish self-managed superannuation accounts, turning them into digital assets for fixed return blockchain mining projects.
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According to early research by ASIC, over 450,000 Australians made almost $41 million investments via NGS firms. By offering financial services without an Australian financial services license, NGS allegedly broke rules according the banking watchdog. ASIC wants interim and permanent injunctions to stop NGS from running without appropriate license.
Legal Reaction and Regulatory Change
To help creditors collect money, the Federal Court then assigned McGrathNicol, an advice and restructuring company, receivers. Mendham’s passport has also been taken and officials are still looking for the stolen $41 million.
NGS Crypto still promoting profits on blockchain mining on its website ranging from 6% to 16% annually notwithstanding the probe. According to the firm’s website, the renaming to Hiddup is apparently meant to help to eliminate uncertainty and distinguish the company.
Historical Background and past Legal Action
Superannuation fund NGS Super sued NGS Crypto in 2022 for copyright infringement and law breaking by deceiving investors by thinking there was a relationship with its funds. NGS Super stated that company offers nothing linked to cryptocurrencies or associated goods. The continuous trademark conflict apparently drove NGS Crypto to rename itself as Hiddup.
According to an ASIC spokesman, the commission is looking at NGS’s rebranding initiatives within the probe and is aware of them.
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