US Authorities Expose $1.9 Billion Crypto Ponzi Fraud
The US Securities and Exchange Commission (SEC) has charged the founders of HyperVerse, Sam Lee and Brenda “Bitcoin Beutee” Chunga, with crypto fraud after their alleged Ponzi scheme, known as HyperFund, stole nearly $2 billion from investors. According to the SEC, the duo lured investors by promising profits from non-existent crypto mining operations, but instead diverted funds for personal gain.
Misappropriation of Funds and Involvement of Other “Characters”
Brenda Chunga misused around $3.7 million for personal expenses, while Sam Lee directed $140,000 to his own wallet. The SEC also revealed that HyperVerse employed a fake CEO, Steven Reece Lewis, to give a speech during its launch, and new investor deposits funded withdrawals without legitimate revenue. Additionally, Rodney Burton, known as “Bitcoin Rodney,” was arrested earlier for his involvement in the scheme.
Legal Actions and Restitution
The US District Court charged Lee and Chunga with wire fraud conspiracy and the SEC is seeking the return of ill-gotten gains. Chunga has already agreed to a settlement, facing future deal restrictions and fines pending court approval. Authorities are determined to hold the perpetrators accountable and seek restitution for investors who were defrauded.
Hot Take: SEC Cracks Down on $2 Billion Crypto Ponzi Scheme
The SEC’s charges against the founders of HyperVerse and its alleged Ponzi scheme, HyperFund, highlight the regulatory commitment to protecting investors from fraudulent crypto schemes. As the crypto industry continues to expand, it is crucial for individuals to conduct thorough due diligence and be cautious of unrealistic promises. This case serves as a reminder to stay vigilant and rely on reputable platforms and investments within the crypto space. By taking legal action and seeking restitution, the authorities are sending a strong message against financial fraud in the digital currency world.
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