As a seasoned crypto investor who has gone through my fair share of market volatility and regulatory uncertainty, I can’t help but feel a sense of caution and disappointment upon hearing the news about Hiddup (formerly NGS Crypto). The ongoing legal issues surrounding this Australian company, including financial misconduct allegations and unlicensed operations, are concerning.
An Australian cryptocurrency company named NGS Crypto underwent a name change to “Hiddup” following intense examination by the Australian Securities and Investments Commission (ASIC). The renaming, which resulted from a trademark disagreement, occurred concurrently with ASIC’s ongoing investigation into financial irregularities involving approximately $41 million owed to investors.
The Australian Securities and Investments Commission (ASIC) initiated a legal move that has resulted in the freezing of assets not only from NGS Crypto but also its directors – Mark Ten Caten, Brett Mendham, and Ryan Brown – as well as the company’s funds earlier in the year. This action came after claims that NGS Crypto and associated entities were functioning without the mandatory Australian financial services license.
these entities allegedly motivated Australians to put money into digital assets via self-managed superannuation funds, offering guaranteed yields through blockchain mining deals.
The initial report from ASIC indicates that approximately 450 Australians have collectively invested around $41 million in NGS Crypto’s investment schemes. In reaction, ASIC is pursuing court orders to halt NGS Crypto’s activities until they meet the necessary regulatory standards.
The Federal Court has appointed McGrathNicol as receivers to assist creditors in their attempt to recover their funds following the financial mismanagement of the case. Moreover, Brett Mendham’s passport has been seized, and ongoing efforts are being made to trace the missing $41 million.
NGS Crypto’s announcement to rebrand as Hiddup follows a series of legal issues, including a dispute with NGS Super, a different superannuation fund, that initiated a lawsuit against NGS Crypto in 2022. The accusations included trademark violation and misleading investors by suggesting an affiliation with NGS Super.
In spite of ongoing legal disputes, Hiddup persists in marketing blockchain mining investment prospects on its website, offering projected annual yields ranging from 6% to 16%.
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2024-06-25 16:20