An Australian and two Americans have been charged with orchestrating a $1.9 billion cryptocurrency scam based around a purported DeFi platform, HyperFund, the U.S. Department of Justice said on Monday.

The DOJ accused Australian citizen Sam Lee of co-founding HyperFund and Rodney Burton and Brenda Chunga of promoting it, together defrauding investors of $1.89 billion by claiming that investment returns would come from what the court called “non-existent cryptocurrency mining operations.”

“The level of alleged fraud here is staggering,” U.S. Attorney Erek L. Barron for the District of Maryland said in a statement. “Whether it’s cryptocurrency fraud or any other financial frauds, if it sounds too good to be true, it probably is.

“This office and our law enforcement partners will hold perpetrators accountable for these and other fraud schemes.” Barron added.

From June 2020 to November 2022, the Justice Department said, the trio allegedly offered and sold investment contracts to the public through HyperFund, making what the court called false claims, including HyperFund “memberships” giving investors between 0.5% to 1% daily in passive rewards until the company either doubled or tripled the investor’s initial investment.

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Author: Jason Nelson

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