Sam Lee Crypto Scam: $1.89B Ponzi Exposed in HyperVerse Fraud

Once known as Australia’s “crown prince of Bitcoin,” Sam Lee is now entangled in a major legal battle with both the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). The blockchain entrepreneur, who co-founded the HyperVerse and HyperFund investment schemes, is facing serious fraud charges. Prosecutors accuse him of running a $1.89 billion Ponzi scheme that deceived thousands of investors worldwide.

Here’s everything you should know.

A Crypto Investment That Wasn’t What It Seemed

The SEC claims that Lee and his associates operated a multi-level marketing scam disguised as a high-return crypto investment. Between June 2020 and November 2022, investors were promised guaranteed profits, but instead, their money was funneled into a fraudulent system. One of Lee’s key promoters, Brenda Chunga, has already pleaded guilty to conspiracy charges, admitting that HyperFund “mined” investors’ funds rather than cryptocurrencies.

Investigations have revealed even more deception. Lee allegedly used a fake CEO to give the HyperVerse scheme an air of legitimacy. He also had ties to the now-collapsed Australian crypto firm Blockchain Global, raising concerns about his past dealings. His reputation has taken a serious hit, and few people still support him.

Arrest in Dubai: Will He Face U.S. Justice?

In November 2024, Lee voluntarily surrendered to Dubai authorities after an Interpol Red Notice was issued against him. He was detained for 60 days before being released, leading to speculation about whether he will ever be extradited to the U.S. The DOJ has charged him with conspiracy to commit securities and wire fraud, which could land him in prison for five years.

Meanwhile, the SEC is suing him for illegally selling unregistered securities.

Lee Fights Back, Blames Regulators

Despite his legal troubles, Lee refuses to back down. In a video interview with Bloomberg, he dismissed the accusations, arguing that multi-level marketing is legitimate and accusing U.S. regulators of trying to stifle crypto. He also praised Dubai’s regulatory environment and hinted at future ventures. His final remarks—“there are many exciting projects on the horizon”—have raised concerns that he may already be planning his next scheme.

These fears grew stronger when a series of nine YouTube videos promoting his new venture resurfaced.

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Another Scam in the Making?

Lee’s new venture raises red flags. Like before, he relies on affiliate marketing and vague token systems—common features of Ponzi schemes. Instead of taking responsibility for HyperVerse’s collapse, he shifts the blame and downplays the legal charges. His habit of dismissing critics while demanding loyalty from followers is a classic scammer move. His vague promises and secretive approach only add to the suspicion.

The crypto world moves fast, but scandals like these leave scars that don’t fade easily.