Australian Securities Regulators Investigate Blockchain Global Over Previous Crypto Schemes
Australian securities regulators are currently conducting an investigation into Blockchain Global following a report that linked two of its directors to previous cryptocurrency schemes. The Australian Securities and Investment Commission (ASIC) is specifically looking into the actions of directors Sam Lee and Ryan Xu after they were connected to a crypto scheme called Hyperverse. This investigation comes after ASIC initially chose not to take any action against Blockchain Global in 2021. However, following a recent article by The Guardian Australia linking the directors to Hyperverse, ASIC has decided to reevaluate the situation and review Blockchain Global’s liquidation report.
Hyperverse Scheme Raises Red Flags
The investigation into Blockchain Global has revealed significant losses in the Hyperverse investment scheme. Despite being suspected as a pyramid scheme and possible scam overseas, the scheme managed to avoid regulatory scrutiny in Australia. The US Internal Revenue Service (IRS) alleges that early investors were paid with funds from later investors, and the company’s claimed Bitcoin mining operations were non-existent. The estimated losses for Hyperverse in 2022 amount to around $1.3 billion. Additionally, ASIC’s investigation into the collapse of Blockchain Global has unveiled a potential connection to HCash, a cryptocurrency associated with the Hyper investment schemes.
Status of Directors
Ryan Xu’s current whereabouts are unknown, while Sam Lee has not responded to The Guardian Australia’s report. Both directors are under scrutiny as part of ASIC’s investigation.
Hot Take: Investigation Launched Into Collapse of Crypto Firm Owing Creditors $58 Million
Australian securities regulators have launched an investigation into Blockchain Global after two of its directors were linked to previous crypto schemes, including Hyperverse. Despite avoiding regulatory scrutiny in Australia, Hyperverse resulted in significant losses totaling approximately $1.3 billion in 2022. The investigation by the Australian Securities and Investment Commission (ASIC) into the collapse of Blockchain Global has also revealed a potential connection to HCash, another cryptocurrency associated with the Hyper investment schemes. This investigation highlights the need for increased regulatory oversight in the crypto industry to protect investors and prevent fraudulent activities.
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