The online investment platform, whose brands included HyperFund, HyperCapital, and HyperTech, is said to have taken up to $1.89 billion from people in different parts of the world who were lured by the promise of instant wealth. It started around June 2020.
In the lawsuit, the SEC states that Sam Lee, who was the founder of the Australian company that resides in the United Arab Emirates, and Brenda Chunga, a promoter of the business from Maryland, deceived the investors with this “pyramid and Ponzi scheme.” Chunga accepted the SEC accusations, the agency said. Many investors don’t know how to withdraw money from hyperverse. Even they tried it is not poosible to withdraw their full amount from HyperVerse.
No visible of legitimate source
As it was stated in the SEC complaint filed on Monday, “HyperFund even hired an actor to act as the new CEO when HyperVerse arrived,” and the executive that goes by Steven Reece Lewis, who delivered a speech during the launch event, was a Thai TV presenter.
“There being no visible legitimate source of funds, investor withdrawals were paid with new investor deposits,” the SEC alleged, according to the complaint.
The request for comment sent to the company was not immediately responded to.
“HyperFund simply mined investors’ pockets; Lee and Chunga enticed investors with the prospect of income from mining crypto assets,” Gurbir Grewal, director of the SEC’s enforcement division, was quoted as saying.
The SEC he was revealed that about $3.7 million of the money was taken by Chunga for himself, where he bought a BMW, designer clothes, a $1.2 million house in Maryland, and a $1.1 million condo in Dubai. Lee moved a $140,000 digital asset balance to his wallet, according to the complaint.
On Jan. 25, Lee and Cunga were indicted by the U.S. District Court for the District of Maryland in an alleged conspiracy to commit wire fraud.
Charge of unregistered securities
SEC additionally charged them with offering unregistered securities and wanted them to return all improper gains. If the court accepts the proposal, Chunga agrees to settle the charges by an agreement accepting an embargo and paying the fines as set by the court.
Just recently, U.S. officials arrested and charged Rodney Burton on suspicions that he scammed more than $7 million using the same phony investment scheme, according to allegations filed by the U.S. Internal Revenue Service.
The founders of HyperTech, Lee and his fellow entrepreneur Ryan Xu, are also the founders of the defunct Australian Bitcoin company Blockchain Global, which owes creditors $58 million.
“Mr. Lee would be here attempting to give back the money to those investors who have invested tens of thousands, thousands, and hundreds, not to know how to withdraw money from hyperverse their money,” the Tongan promoter was quoted saying, according to this report.
Lee, who has previously said it was not a scam, did not answer our questions.