The Australian Securities and Investments Commission (ASIC) has initiated civil proceedings against the NGS Group and its directors, Brett Mendham, Ryan Brown, and Mark Ten Caten. The NGS Group's companies involved are NGS Crypto, NGS Digital, and NGS Group, which offer blockchain crypto mining services.

ASIC alleges that the NGS companies have been targeting Australian investors by offering blockchain mining packages with a guaranteed return rate. Furthermore, the regulator claims that the companies have been encouraging investors to use self-managed super funds (SMSFs) to convert their money into cryptocurrency.

NGS Crypto, which was established in 2018 as a blockchain firm, is part of the NGS Group and aims to assist its members in generating consistent returns. However, ASIC's press release states that these financial services are being offered without the necessary licensing. As a result, the regulator is seeking interim and final injunctions against the NGS Companies.

ASIC Chair Joe Longo advised Australian investors to carefully consider the risks associated with self-managing their SMSFs and investing in crypto-related products, such as those offered by the NGS Group. Additionally, Longo warned the industry that ASIC would closely scrutinize crypto products to ensure compliance with regulatory standards.