Federal authorities close down HyperFund cryptocurrency scam worth $1.89 billion, leading promoters to face imprisonment.
Major Cryptocurrency Fraud HyperFund Faces Legal Charges
A groundbreaking financial scam has been exposed as the Justice Department charges two individuals and secures a guilty plea from another in connection with the massive $1.89 billion cryptocurrency fraud known as HyperFund.
The charges reveal a deliberate and calculated plan to defraud investors of $1.89 billion. In court documents, it is revealed that the accused used deceptive tactics, misleading investors through false representations and unrealistic promises. The scheme involved enticing unsuspecting investors with unrealistic returns from cryptocurrency mining operations, despite the fact that no such operations existed within the company.
Between June 2020 and November 2022, the mastermind behind HyperFund, Sam Lee, along with two promoters, offered and sold investment contracts to victims through HyperFund’s online platform. The promotional materials made false claims that investors who purchased HyperFund “memberships” would receive daily passive rewards ranging from 0.5% to 1% until their initial investment was either doubled or tripled.
To further substantiate their claims, the accused insisted that the payments would come from revenues generated by large-scale crypto-mining operations. However, it was later discovered that no such operations were in place.
Investors have suffered greatly as a result of the fraud. Starting in July 2021, HyperFund began blocking investor withdrawals, causing financial distress for many. Sam Lee, an Australian citizen residing in Dubai, now faces charges of conspiracy to commit securities fraud and wire fraud. The main promoters, Rodney Burton of Miami and Brenda Chunga of Maryland, also face serious charges.
If convicted, Lee, Burton, and Chunga could face a maximum prison sentence of five years, highlighting the severity of their alleged involvement in the fraudulent scheme.
Assistant Attorney Nicole M. Argentieri affirmed the Justice Department’s dedication to exposing and prosecuting complex fraud cases involving cryptocurrency. She stated, “We are committed to uncovering sophisticated frauds involving cryptocurrency and digital assets and bringing those who perpetrate them to justice.”
Authorities issue a stern warning to potential investors, emphasizing the importance of skepticism when it comes to financial investments, whether it be cryptocurrency fraud or any other type of deception. The office and its law enforcement partners vow to hold perpetrators accountable for their involvement in such schemes.
In conclusion, it is crucial to protect investors from fraudulent activities by enhancing awareness and implementing strict measures against those who seek to deceive and defraud innocent individuals.