HyperVerse Accused: $2B Ponzi Scheme with Actor as Fake CEO

• HyperVerse Alleged as $2 Billion Fraudulent Crypto Investment Scheme
• More on the HyperVerse Scheme
• Key Players in the Scheme and SEC Allegations
• Personal Gains of the Key Figures
• Legal Actions
• Related Arrests and Charges
• Founders' History

HyperVerse Alleged as $2 Billion Fraudulent Crypto Investment Scheme

Allegedly lead by a fake CEO, the infamous HyperVerse is a crypto investment scheme accused of fraudulent activities that sum up to nearly $2 billion. This accusation comes from both a grand jury and the U.S. Securities and Exchange Commission (SEC). Legal actions such as a lawsuit and criminal indictments have been initiated against two key figures of the scheme.

More on the HyperVerse Scheme

Operating under various brand names like HyperFund, HyperCapital, and HyperTech, the online investment business is believed to have extracted around $1.89 billion globally. This was achieved by luring people with the promise of getting rich quickly. It is thought that this business operation initiated in June 2020.

Key Players in the Scheme and SEC Allegations

The SEC lawsuit alleges that Brenda Bitcoin$42,260 -0.64% Beutee Chunga, a promoter of the business from Maryland, and Sam Lee, an Australian founder residing in the United Arab Emirates, duped investors with this pyramid and Ponzi scheme. An interesting fact to note is that an actor was hired by HyperFund to masquerade as the new CEO when HyperVerse was launched. The executive dubbed as Steven Reece Lewis, who delivered a speech during this event, was in reality a TV host living in Thailand, as per the SEC complaint filed recently.

Further allegations by the SEC indicate that there seems to be no clear source of legitimate revenues in this case. Payments for investor withdrawals were essentially made with deposits from new investors.

Efforts to get a comment from the company are yet to yield a response.

Personal Gains of the Key Figures

According to the SEC, Chunga personally took about $3.7 million and indulged in a luxurious lifestyle, spending it on a BMW, designer clothing, a $1.2 million property in Maryland, and a $1.1 million condo in Dubai. The complaint further details that Lee transferred $140,000 in digital currency to a wallet under his control.

Legal Actions

The U.S. District Court for the District of Maryland, in an indictment dated January 25, accused Lee and Chunga of conspiring to commit wire fraud. Additional accusations from the SEC include offering unregistered securities, and it is demanded that these individuals return any ill-gotten assets.

Related Arrests and Charges

Earlier in the month, U.S. authorities arrested and charged Rodney Burton, known as 'Bitcoin Rodney', for allegedly defrauding over $7 million through the same fake investment scheme, as per the allegations made by the U.S. Internal Revenue Service.

Founders' History

Lee, along with his business associate Ryan Xu, founders of HyperTech, also established the now-defunct Australian bitcoin firm Blockchain Global. This company still owes $58 million to creditors.

Edited by Jonathan Stoker