Hyperverses Alleged Ponzi Scheme Raked in Nearly $2B, Hired Actor as Fake CEO

Title: HyperVerse Alleged Ponzi Scheme Raked in Nearly $2B, Hired Actor as Fake CEO

The U.S. Securities and Exchange Commission (SEC) and a grand jury have filed a lawsuit and criminal indictments against two leaders of HyperVerse, a fraudulent crypto investment scheme. The online investment business, operating under various brands such as HyperFund, HyperCapital, and HyperTech, is accused of defrauding investors of approximately $1.89 billion. The SEC alleges that the scheme operated as a pyramid and Ponzi scheme, with promises of quick riches luring in unsuspecting individuals from around the world. The lawsuit names Sam Lee, an Australian founder residing in the United Arab Emirates, and Brenda “Bitcoin Beutee” Chunga, a promoter from Maryland, as the key individuals behind the fraudulent operation.

Details of the Allegations:
According to the SEC complaint filed on Monday, HyperFund went to great lengths to deceive investors, even hiring an actor to pose as the company’s CEO during its launch. The actor, identified as Steven Reece Lewis, is a TV presenter residing in Thailand. The SEC alleges that HyperVerse had no legitimate source of revenue and used new investor deposits to pay off existing investors’ withdrawals, a classic characteristic of a Ponzi scheme.

Settlement and Personal Gains:
Brenda Chunga, one of the accused, has agreed to settle the SEC accusations. The agency has not disclosed the terms of the settlement, but it includes a ban on certain activities and fines to be determined by the court. The SEC claims that Chunga personally profited from the scheme, having taken approximately $3.7 million, which she allegedly spent on luxury items such as a BMW, designer clothing, a $1.2 million home in Maryland, and a $1.1 million condo in Dubai. Sam Lee, the other key figure in the scheme, is said to have taken $140,000 in digital funds to a wallet under his control.

Legal Consequences and Demands:
An indictment filed on January 25 in the U.S. District Court for the District of Maryland accuses Lee and Chunga of conspiring to commit wire fraud. In addition to the fraud charges, the SEC has accused them of offering unregistered securities and is demanding that they return any ill-gotten gains. If the court accepts the settlement agreement, Chunga will face penalties determined by the court.

Related Arrest and Previous Involvement:
Earlier this month, U.S. authorities arrested and charged Rodney Burton for allegedly defrauding over $7 million through the same fake investment scheme. Rodney Burton, also known as “Bitcoin Rodney,” was allegedly involved in promoting the HyperVerse crypto scheme. Furthermore, the founders of HyperTech, Sam Lee, and his business partner Ryan Xu, were also involved in the collapsed Australian bitcoin company Blockchain Global, which currently owes creditors $58 million.

The alleged $2 billion fraudulent crypto investment scheme operated by HyperVerse has attracted the attention of the SEC and a grand jury. The lawsuit and criminal indictments against the scheme’s leaders, Sam Lee and Brenda Chunga, shed light on the deceptive practices employed by the company. The involvement of an actor posing as the CEO during the launch event further highlights the extent of the scheme’s deceit. As legal proceedings unfold, authorities are seeking to hold the individuals accountable and recover any ill-gotten gains.