Australian Regulator Alerts Public to NGS Crypto Rebranding Amid Probe into Alleged Misconduct

ASIC investigates cryptocurrency firm NGS Crypto, now rebranded as Hiddup, for alleged misconduct.

Key Insights

  • ASIC announces NGS Crypto’s rebranding to Hiddup amid ongoing investigation
  • Regulator investigating potential mishandling of investor funds and unlicensed operations
  • Federal Court appoints receivers to secure digital assets of NGS companies and directors

SYDNEY (MarketsXplora) – The Australian Securities and Investments Commission (ASIC) has issued a public notice regarding the rebranding of cryptocurrency firm NGS Crypto to Hiddup, as investigations into the company’s operations continue.

As of July 1, 2024, NGS Crypto’s website now redirects to Hiddup.com, which confirms the rebranding, ASIC said in a statement on Thursday.

Australian regulator ASIC announces investigation into NGS Crypto, recently rebranded as Hiddup.

The regulatory body is currently investigating NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Limited (domiciled in Hong Kong), along with their officers, employees, agents, representatives, and associated entities.

ASIC’s probe stems from concerns that the NGS companies may have mishandled investor funds and potentially operated a financial services business without the required Australian Financial Services Licence (AFS Licence).

Federal Court Appoints Receivers as ASIC Probes NGS CryptoΒ 

On April 9, 2024, ASIC sought interim ex parte orders in the Federal Court to secure the digital assets of the NGS companies and their directors, Mark Ten Caten, Brett Mendham, and Ryan Brown. The regulator also requested travel restraint orders for Mendham.

“We are seeking declarations that the NGS companies have violated section 911A of the Corporations Act by conducting a financial services business without an AFSL,” an ASIC spokesperson told MarketsXplora. “We are also pursuing interim and final injunctions against these companies.”

The Federal Court responded on April 10, 2024, by appointing receivers over the digital assets of the NGS companies and their directors. Anthony Norman Connelly, Katherine Sozou, and William James Harris of McGrath Nicol were named as receivers and managers, with the initial task of securing digital assets for investors.

ASIC has urged investors who have dealt with NGS Crypto, now known as Hiddup, to remain vigilant and to report any concerns to the regulator.

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