US authorities charged leaders of the cryptocurrency investment scheme HyperVerse with defrauding investors of as much as $2 billion by touting fake crypto mining operations, even hiring an actor to pose as CEO.

The Securities and Exchange Commission lawsuit alleges HyperVerse founders Sam Lee and Brenda “Bitcoin Beutee” Chunga operated a “pyramid and Ponzi scheme” under shifting names like HyperFund and HyperTech since 2020. They stand charged criminally with conspiracy to commit wire fraud.

“HyperFund even hired an actor to pretend to be the new CEO when HyperVerse was launched,” the SEC said, referring to a Thailand-based TV presenter who spoke at the brand’s debut.

With no legitimate revenue, regulators claim investor withdrawals were paid with deposits from newer victims.

The venture’s founders and a business partner named Ryan Xu also created Blockchain Global. This project went into bankruptcy by 2021, owing creditors $58 million. Blockchain Global was the parent company of ACX, a defunct Melbourne-based crypto exchange.

Authorities said Chunga spent over $3.7 million of investor money on luxury purchases like a BMW and a million-dollar Dubai condo. At the same time, Lee transferred at least $140,000 of illicit funds to his wallet. The collapse echoes other failed crypto investment ploys.

The US District Court in Maryland indicted Lee and Chunga on Jan. 25, chargi

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Author: Vince Dioquino

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