Feds Shut Down $1.89 Billion HyperFund CryptoScam; Promoters Face Prison

In a press release by the Office of Public Affairs, a seismic event has transpired within the financial landscape. The Justice Department has officially charged two individuals and secured a guilty plea from a third, all connected to a colossal $1.89 billion cryptocurrency fraud known as HyperFund.

Read more about this below.

Deceptive Tactics Exposed

The charges allege a deliberate scheme to defraud investors of $1.89 billion. Court documents reveal a complex web of deceit, with the accused misleading investors through false representations and unattainable promises. The trio lured unsuspecting investors with unrealistic returns from cryptocurrency mining operations, despite the absence of any such operations within the company.

From June 2020 to November 2022, Lee and the duo offered and sold investment contracts to the victims through HyperFund’s online investment platform. The scheme’s promotional materials made false claims that were too good to be true. It claimed that investors who purchased HyperFund “memberships” would receive between 0.5% to 1% daily in passive rewards until the company either doubled or tripled the investor’s initial investment. 

Also Read: OneCoin Fraudster Mark Scott Sentenced to 10 Years in Prison for Laundering $400 Million

To bolster their claims, the accused insisted that payments would stem from revenues generated by large-scale crypto-mining operations. However, upon scrutiny, it became evident that no such operations existed.

Investors Continue Suffering

Starting in July 2021, HyperFund began blocking investor withdrawals, thrusting unsuspecting investors into financial turmoil. Sam Lee, the mastermind behind HyperFund, an Australian citizen residing in Dubai, now faces charges of conspiracy to commit securities fraud and wire fraud. Meanwhile, Rodney Burton of Miami and Brenda Chunga of Maryland, identified as the main promoters, also face serious charges.

Lee, Burton, and Chunga could potentially face a maximum penalty of five years in prison, marking a severe consequence for their alleged roles in the fraudulent scheme.

Justice Shall Be Served!

Assistant Attorney Nicole M. Argentieri emphasized the Justice Department’s commitment to unveiling and prosecuting sophisticated frauds involving cryptocurrency.

“We are committed to uncovering sophisticated frauds involving cryptocurrency and digital assets and bringing those who perpetrate them to justice,”

The authorities issue a stern warning to potential investors, asserting that whether it’s cryptocurrency fraud or any financial deception, skepticism is the best policy.

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

What do you think needs to be done to protect investors?