Hiddup, formerly known as NGS Crypto, continues to advertise annual returns ranging from 6% to 16% through blockchain mining on its website, despite facing significant legal action and an ongoing investigation.
The Australian crypto company recently rebranded to “Hiddup” amid legal troubles with the Australian Securities and Investments Commission (ASIC). On June 25, NGS Crypto claimed the rebrand was due to a trademark dispute, although it coincides with ASIC’s case involving approximately 61 million Australian dollars ($41 million) 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.
ASIC’s Allegations and Actions
ASIC has launched a lawsuit against three crypto mining companies associated with NGS: NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd. These companies have since gone into liquidation.
The companies are accused of targeting Australians to create self-managed superannuation funds, which were then converted into digital assets for investment in blockchain mining packages with promised 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 Australian laws by providing financial services without an Australian financial services license. As part of the proceedings, ASIC is seeking interim and final injunctions to prevent NGS from continuing its operations without proper licensing.
In response to these developments, the Federal Court has appointed the advisory and restructuring firm McGrathNicol as receivers to assist creditors in recovering funds.
Additionally, Mendham’s passport has been seized, and authorities are continuing their search for the missing $41 million.
Summary Review: While Hiddup attempts to move forward with its rebranding, the ongoing legal challenges and investigations by ASIC create significant hurdles for the company’s future operations. The resolution of these legal issues will be crucial in determining whether Hiddup can successfully navigate its current financial and regulatory difficulties.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
