Australia’s Minister Questions ASIC’s Failure to Issue Warning About $1.3B Crypto Scam
Australia’s minister for financial services and assistant treasurer, Stephen Jones, plans to interrogate the Australian Securities and Investments Commission (ASIC) regarding its failure to warn consumers about the HyperVerse crypto scam. The scheme, also known as HyperFund, operated in multiple countries including the UK, New Zealand, Canada, Germany, and Hungary since 2021. Jones expressed concern over the fact that HyperVerse was offering worthless investment products and questioned why ASIC did not issue a warning. In response, ASIC stated that it aims to protect consumers from digital scams but did not clarify whether it will investigate the HyperVerse scheme further.
Crackdown on Crypto Scams
Stephen Jones emphasized the importance of cracking down on crypto scams by eliminating distribution channels and imposing obligations on social media platforms to remove fraudulent promotions. He believes that these measures are key to combating scams and fake investment schemes. The minister did not provide details on ASIC’s specific plans but hinted at increased efforts to regulate the crypto industry.
HyperVerse Scheme Organizers
The HyperVerse scheme was organized by Australian blockchain entrepreneur Sam Lee and his business partner Zijing “Ryan” Xu. Both individuals were associated with Blockchain Global, an Australian crypto company that faced financial difficulties in 2021. Chainalysis reported that HyperVerse was the largest scam of 2022, generating approximately $1.3 billion in revenue.
Hot Take: Australia’s Push for Crypto Regulation
Australia’s minister for financial services is taking a firm stance on crypto scams by questioning ASIC’s failure to warn consumers about the massive HyperVerse scheme. This incident highlights the need for stronger regulations in the cryptocurrency industry to protect investors from fraudulent activities. As the government plans to crack down on distribution channels and impose obligations on social media platforms, it sends a clear message that Australia is committed to eliminating crypto scams. The involvement of prominent figures like Sam Lee and Zijing Xu in the HyperVerse scheme underscores the importance of thorough due diligence when investing in cryptocurrencies.
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