Under the pressure of the Australian Securities and Investments Commission, the Australian NGS Crypto rebranded as “Hiddup,” an important shift in the company’s branding.
The change from ‘Hive’ to ‘Hiddup’ was communicated by the company in order to avoid any trademark-related complications and to reduce the confusion that ensued after NGS Super sued Hive in 2022, local outlets reveal.
Teaming up with the Australian Securities and Investments Commission, NGS Super sought an injunction against the crypto firm, claiming trademark infringement and having falsely represented itself as a company that is not associated with cryptocurrencies and being in the business of crypto products, which is untrue as per the firm.
NGS Crypto faces dual legal challenges: one with NGS Super for trademark disputes and another with ASIC for other alleged legal non-compliance and business practices in Australia.
NGS Crypto ICO Accused of Defrauding 450 Investors
The probe into NGS Crypto, NGS Digital, and NGS Group began after Australians claimed the companies defrauded them.
The financial regulator claims that directors Brett Mendham, Ryan Brown, and Mark Ten Caten, and the companies associated with them, engaged in a scheme aimed at generating up to $41 million of funds from investors dishonestly.
ASIC sued the NGS companies for conducting business without an Australian financial service license, offering and sponsoring blockchain mining packages that yielded fixed interest rates to Australian investors and deceiving investors into transferring their funds from regulated superannuation funds into SMSFs to invest in digital assets.
ASIC Responds to Allegations from NGS Crypto: Legal Proceedings and Asset Seizures
In April, a federal judge agreed with the ASIC to sequester $41 million from NGS Companies, which included appointing McGrathNicol specialists to freeze directors’ funds in addition to confiscating Mendham’s passport so that he could not flee the country.
Despite these investigations and lawsuits, Hiddup continues to market its annual returns from blockchain mining at between 6 and 16 percent to miners, with ASIC being cognizant of its rebranding plans.
