• Hyperfund founders Lee and Chunga have filed a lawsuit alleging $1.7 billion in cryptocurrency fraud.
• Mr. Chung-ah agreed to a settlement pending court docket approval, however Mr. Lee faces a lawsuit.
• The U.S. Legal professional's Workplace filed extra fees.

The U.S. Securities and Trade Fee (SEC) has taken decisive authorized motion in opposition to people allegedly concerned in a $1.7 billion Ponzi cryptocurrency scheme associated to HyperFund, HyperVerse, and HyperTech.

The accused individuals are Xue Li, also called Sam Li, and Brenda Chunga, also called Bitcoin Voty. They’re accused of orchestrating a fraudulent scheme to defraud traders and violate federal securities legal guidelines.

False membership plan

A lawsuit filed by the SEC on January 29, 2024 alleges that Sam Lee and Brenda Chunga bought false “membership” plans to traders, promising large income that by no means materialized. Alleges that he engaged in misleading conduct. They allegedly misled traders with unsubstantiated claims about giant income being made out of Hyperfund's cryptocurrency mining operations and falsely represented partnerships with Fortune 500 firms.

Brenda Chunga is accused of personally making $3.7 million from the rip-off, which she used to purchase a $1.1 million rental in Dubai, a $1.2 million house in Maryland, and a BMW. It’s stated that he used it. In the meantime, Xue Li is accused of acquiring roughly $140,000 in digital foreign money that was deposited in a digital foreign money pockets underneath her management.

Mr. Chunga, who at present resides in Maryland, entered right into a settlement with the SEC through which he agreed to chorus from future securities regulation violations and pay a penalty, pending court docket approval. Nevertheless, the SEC has filed a lawsuit in opposition to Mr. Xue Li, who at present resides within the United Arab Emirates, on suspicion of fraud and violation of registration legal guidelines. is searching for restoration and the imposition of extra penalties.

Along with the SEC lawsuit, the U.S. Legal professional's Workplace for the District of Maryland has charged Lee and Chunga with wire fraud and securities fraud. Mr Chunga reportedly acknowledged his position within the scheme.

Additional investigation revealed Mr. Lee's ties to HyperVerse, one other alleged fraud focusing on people in Asia, Africa, and the Pacific area. The SEC suspects that Lee could also be related to different crypto frauds, highlighting the deep challenges of fraud within the crypto business.

Australian nationwide Xue Li can also be being investigated by the Australian Securities and Investments Fee in reference to the bankrupt Blockchain World, which owed collectors $58 million when it collapsed in 2021. Australian regulators are contemplating fees. Mr Lee and his enterprise companions, Allan Guo and Ryan Xu, have been charged with breaching the Australian Corporations Act.