HyperFund founders Lee and Chunga sued for $1.7B crypto rip-off.
Chunga has agreed to a settlement, pending courtroom approval, whereas Lee faces authorized motion.
Extra expenses have been filed by the US Legal professional’s Workplace.
The US Securities and Alternate Fee (SEC) has taken decisive authorized motion towards people allegedly concerned in a cryptocurrency ‘Ponzi’ scheme value $1.7 billion, related to HyperFund, HyperVerse, and HyperTech.
The accused people are Xue Lee, also referred to as Sam Lee, and Brenda Chunga, also referred to as Bitcoin Beautee. They’re accused of orchestrating fraudulent schemes that deceived traders and violated federal securities legal guidelines.
False membership plans
The lawsuit filed by the SEC on January 29, 2024, alleges that Sam Lee and Brenda Chunga engaged in misleading practices by promoting false “membership” plans to traders, promising profitable returns that by no means materialized. They purportedly misled traders with unfounded claims of considerable earnings from HyperFund’s cryptocurrency mining operations and falsely represented an affiliation with a Fortune 500 firm.
Brenda Chunga is accused of personally acquiring $3.7 million from the rip-off, which she reportedly used to buy a $1.1 million condominium in Dubai, a $1.2 million home in Maryland, and a BMW. Then again, Xue Lee is accused of allegedly getting round $140,000 in cryptocurrencies that have been deposited right into a crypto pockets underneath his custody.
Chunga, who at the moment resides in Maryland, has entered right into a settlement with the SEC, agreeing to chorus from future violations of securities legal guidelines and consenting to pay fines, pending courtroom approval. Nevertheless, the SEC is pursuing authorized motion towards Xue Lee, who at the moment resides within the United Arab Emirates, for fraud and registration regulation violations, looking for to halt his involvement in comparable fraudulent actions, get better illicitly obtained funds, and impose further penalties.
Along with the SEC lawsuit, the US Legal professional’s Workplace in Maryland has filed expenses towards Lee and Chunga for wire and securities fraud. Chunga has reportedly admitted to her position within the scheme.
Additional investigations have revealed Lee’s affiliation with HyperVerse, one other suspected rip-off focusing on people in Asia, Africa, and the Pacific. The SEC speculates that Lee might have connections to different cryptocurrency scams, underscoring the persistent challenges of fraudulent actions inside the cryptocurrency trade.
Xue Lee, who’s an Australian nationwide, can be underneath investigation by the Australian Securities Funding Fee for his connection to the collapsed Blockchain International, which owed $58 million to collectors on the time of its collapse in 2021. The Australian regulator is contemplating expenses towards Lee and his enterprise companions, Allan Guo and Ryan Xu, for potential breaches of the Australian Companies Act.