‘Soft launch’ for rebrand of crypto company eyed by authorities

A crypto scheme accused of breaching the law has ‘soft launched’ a fresh brand for itself, despite ongoing investigations.

(L-R) Ryan Brown and Brett Mendham. NGS Crypto and its directors Mark Ten Caten, Ryan Brown and Brett Mendham are facing court action from ASIC.

A Gold Coast crypto currency company promising up to 16 per cent returns has rebranded itself with a new name as receivers continue to look for $60m worth of superannuation money — and while the corporate cop carries on an investigation.

NGS Crypto has now changed its name to “Hiddup”, apparently due to a trademark dispute.

The company’s assets, along with those of its directors Mark Ten Caten, Brett Mendham and Ryan Brown, were frozen in April amid concerns three NGS companies targeted Australian investors to invest in blockchain mining packages with fixed-rate returns, encouraging them to use funds transferred from regulated super funds to self-managed super funds, which were then converted into cryptocurrency, the Australian Securities and Investments Commission said.

“ASIC’s preliminary investigations indicate over 450 Australians invested approximately US$41m through the NGS Companies,” ASIC said.

NGS Crypto and its directors Mark Ten Caten (pictured), Ryan Brown and Brett Mendham are facing court action from ASIC

“ASIC alleges … the NGS Companies contravened section 911A of the Corporations Act by providing financial services without an Australian financial services licence.

“As part of the proceedings ASIC is also seeking interim and final injunctions against the NGS Companies preventing them from providing financial services in Australia without an Australian financial services licence.”

McGrathNicol were appointed receivers by the Federal Court, Mr Mendham’s passport was seized and the search for the $60m continues.

An ASIC spokeswoman said the watchdog “has recently become aware of the website https://hiddup.com/ and is making inquiries.”

NGS Super had previously launched court action against the crypto companies in an attempt to protect its trademark.

In April, a spokeswoman for the company said: “We confirm that NGS Super is not involved in selling cryptocurrency or crypto related products, including but not limited to blockchain, and we would never approach our members to discuss or sell this type of product”.

A news alert on NGS Crypto’s website — containing errors — reported “due to an ongoing trademark dispute with another company, Hiddup has decided to rebrand to Hiddup to avoid any confusion and differentiate our business”.

The alert is claimed to have been posted in February this year, but a response posted to a frequently asked questions section indicated “Hiddup” is yet to officially launch.

“We are doing a soft rebrand with a slow transition across the next 8-12 weeks to ensure no disruption to our service for our members and a smooth transition. An exact date will be communicated closer to time,” one FAQ answer said.

Another reported: “when Hiddup officially launches, all new agreements will be underneath it. The switchover date will be confirmed and communicated to members over the coming months.”

Despite the court action, the company is still advertising returns ranging from between 6 and 16 per cent per annum through blockchain mining on its website.

Pictures of Mr Mendham and Mr Brown continue to appear on the NGS website, as they previously did along with images of elderly couples who appear to be smiling and shaking hands with people.

The court case remains ongoing, and is next listed for a hearing on July 16.

McGrathNicol declined to comment, and NGS Crypto has been contacted.