How a $60m crypto group in watchdog’s crosshairs rebranded to target new customers
NGS Crypto is accused of inappropriately encouraging investors to take money out of their super to invest in bitcoin – and three of the men behind the company are continuing to promote cryptocurrency investments.
Brett Mendham (left) and Mark Tencanten, two of the businessmen behind NGS Crypto, which is under investigation by ASIC.
A $60 million bitcoin mining scheme that is the subject of a major investigation by the corporate watchdog has shut down its website amid concerns it was redirecting unsuspecting potential customers to a new business selling similar products.
This masthead can also reveal that an entity linked to two of the men behind the NGS Crypto scheme has bought and is operating a large financial services group in Australia.
NGS Crypto is accused of inappropriately encouraging Australian investors to take money out of their superannuation savings to invest in bitcoin-related products on the promise of sky-high returns, despite not holding the proper licence to do so.
NGS Crypto founder Mark Tencaten enjoys a round of golf last year after becoming a director of AP Financial Services Group. Credit: Facebook
The Australian Securities and Investments Commission (ASIC) won an order from the Federal Court in April to freeze NGS Crypto’s assets, alleging it had been operating without a financial services licence since 2017. The court also ordered three Australian men linked to the scheme – Mark Tencaten, Ryan Brown and Brett Mendham – to not deal in NGS Crypto’s money while the probe continued.
The orders have not stopped the three men, who are all in their 40s, from working in financial services while the investigation by the corporate regulator continues. Tencaten, a former bankrupt, who has split his time between Bali, Auckland, Sydney and the Gold Coast, has been seeking to have the asset-freezing orders against him and the NGS companies discharged.
A month ago, NGS rebranded as Hiddup, which lists on its website Mendham and Brown as directors and includes NGS Crypto-branded videos and other information.
According to a note on the regulator’s webpage for NGS Crypto, it has been aware the company’s website was redirecting visitors to the Hiddup site since at least July 1.
On Tuesday, this masthead was automatically directed from the NGS Crypto website to the Hiddup site. On Wednesday, the NGS Crypto website was closed, but the Hiddup site remained open. Links on NGS Crypto’s X account continued to send visitors to the Hiddup website.
Brett Mendham on a family holiday.Credit: Facebook
The rebranding effort comes six months after a company associated with Tencaten, Zenoz Enterprises, bought licensed financial services group AP Financial Services Group.
Company records show that in February, Tencaten and Mendham became directors of AP Financial Services Group Ltd. (The records also show that Tencaten, spelling his surname as Ten Caten, had been a director of that entity between December and February before stepping off the board for three weeks.)
ASIC records show that since February, AP Financial Services Group has been owned by Zenoz Enterprises, which is also the lead sponsor of Australian Surf Rowers League Queensland. Tencaten is a director of Zenoz Enterprises.
Under Australian law, any individual or company can obtain a financial services licence by buying a business that holds such a licence. The licences can also be obtained by applying to the regulator and going through strict character tests. No such checks are required if a licence is bought from an existing holder.
ASIC did not respond to questions about AP Financial Services Group’s new owners, Zenoz, or the website redirection. A spokesperson for the regulator said: “While ASIC continues to monitor the activities of all parties, we are not able to comment on an ongoing matter.”
AP Financial Services Group has a long history in Australia, with its ownership and name changing many times over the past two decades. Previous owners have included British peer Lord Michael Ashcroft, who ran the business as Anne Street Partners. Before that, the group was known as Wright Patton Shakespeare and run by since-convicted fraudster Craig Gore.
Zenoz, AP Financial Services Group and Hiddup were all contacted for comment, as were the directors.
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