ASIC seeks orders winding up NGS Crypto
Cryptocurrency News
Maria Nikolova December 10, 2024
The Australian Securities and Investments Commission (ASIC) is seeking orders winding up NGS Group Ltd, NGS Crypto Pty Ltd, and the unregistered managed investment scheme, ASIC alleges that NGS Group Ltd operated.
ASIC seeks orders appointing liquidators to these entities and the alleged scheme.
The Commission has taken this step as it considers that winding up orders and the appointment of liquidators are the best way to facilitate an orderly resolution of the companies’ affairs in Australia and the distribution of any assets recovered by the liquidators, including those currently held by the receivers, back to investors.
The Court will determine whether to make the winding up orders following a final hearing of the matter.
On 2 December 2024, the Federal Court listed the proceedings for a final hearing on 22, 23 and 24 July 2025.
ASIC alleges that the NGS Companies target 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 (SMSFs) and then converted into cryptocurrency.
ASIC’s preliminary investigations indicate over 450 Australians invested approximately USD$41 million through the NGS Companies.
The regulator alleges in the proceedings that 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.
ASIC has informed the public that NGS Crypto has rebranded to Hiddup.
Maria has been engaged in journalism for more than 17 years, providing Forex industry coverage for the past 10 years. Before joining FNG she was Managing Editor at FinanceFeeds. Prior to that, she worked at LeapRate. Maria has a Philosophy degree from the St. Kliment Ochridski university in Sofia. She has specialized in Cognitive Science in Vienna. Her interests include psychology, AI, and linguistics.
