Failing to Issue Warnings
An Australian government official has criticized the country’s securities regulator, the Australian Securities and Investments Commission (ASIC), for its failure to warn investors about the risks of the collapsed crypto investment scheme, Hyperverse. Assistant Treasurer Stephen Jones plans to query ASIC over why it did not follow the lead of regulators in other countries, such as the UK, New Zealand, Canada, Germany, and Hungary, who issued consumer warnings.
A Fictitious CEO
Recent investigations revealed that the CEO of Hyperverse, Steven Reece Lewis, was a fictitious person. The University of Leeds and the University of Cambridge have confirmed that they do not have any records of Lewis. The media probe also discovered that the scheme’s promotional material falsely portrayed Lewis as a graduate of these institutions. In addition, the scammers behind the scheme used celebrity endorsements from Steve Wozniak and Chuck Norris to defraud thousands of investors.
Unsuspecting Victims
The scheme employed a tactic to deceive innocent people into investing their money without a tangible product, relying solely on money from new investors. Assistant Treasurer Jones expressed his confusion over why a warning was not issued, suggesting that a scheme like Hyperverse should have raised suspicions and prompted investor alerts.
Querying ASIC’s Actions
Assistant Treasurer Stephen Jones intends to question the Australian Securities and Investments Commission (ASIC) about its failure to warn investors about the risks associated with the collapsed crypto investment scheme, Hyperverse. He criticizes ASIC for not following the lead of regulators in the UK, New Zealand, Canada, Germany, and Hungary who issued consumer warnings.
An Investigation Reveals a Fake CEO
An investigation into Hyperverse has unveiled that the CEO of the scheme, Steven Reece Lewis, does not exist. The University of Leeds and the University of Cambridge have denied having records of Lewis. The scam used false claims of Lewis being a graduate of these institutions, as well as celebrity endorsements from Steve Wozniak and Chuck Norris, to defraud investors.
A Deceptive Scheme
Hyperverse convinced people to invest their money without a tangible product, relying on funds from new investors as their only source of income. Assistant Treasurer Jones questions why ASIC did not issue a warning, considering the characteristics of the scheme resemble those of a scam.
Hot Take: ASIC’s Failure to Warn Investors about Hyperverse Raises Concerns
The Australian Securities and Investments Commission (ASIC) faces criticism from Assistant Treasurer Stephen Jones for its failure to issue a consumer warning regarding the risks associated with the collapsed crypto investment scheme, Hyperverse. The revelation that the CEO was fictitious and the use of false claims and celebrity endorsements has raised questions about ASIC’s ability to protect investors. Failure to follow the lead of regulators in other countries raises concerns about the effectiveness of Australia’s securities regulator. This case highlights the importance of transparency and regulatory vigilance in the crypto industry to safeguard investors from fraudulent schemes.
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