HyperVerse Faces SEC Allegations of $2 Billion Crypto Investment Fraud

A criminal indictment and complaint have been launched by the U.S. Securities and Exchange Commission (SEC) and a grand jury against two of the founders of HyperVerse, a purportedly fraudulent cryptocurrency investment scam that collected around $2 billion. Operating under many identities, including HyperFund and HyperCapital, the internet investment endeavor is accused of misleading investors worldwide with promises of huge profits.

The SEC claims that Brenda “Bitcoin Beutee” Chunga, a promoter based in Maryland, and Australian founder Sam Lee, who lives in the United Arab Emirates, staged a “pyramid and Ponzi scheme” that deceived investors. The Securities and Exchange Commission (SEC) claims that HyperVerse even hired a TV personality named Steven Reece Lewis to pretend to be the CEO during the company’s debut.

According to the SEC lawsuit, “HyperFund even hired an actor to pretend to be the new CEO when HyperVerse was launched.” According to the complaint, the company had no real source of income and had to rely on deposits from new investors to cover withdrawal demands.

Personal Gains and Lavish Spending

The SEC claims that Brenda Chunga individually obtained around $3.7 million, which she allegedly used to purchase an expensive BMW, fashionable clothes, a $1.2 million home in Maryland, and a $1.1 million apartment in Dubai. Sam Lee is accused of transferring $140,000 in cryptocurrency to a wallet under his ownership. Both people have been charged by the SEC for selling unregistered securities, and they have been ordered to repay any unjustified profits.

Gurbir Grewal, director of the SEC’s enforcement division, commented, “Lee and Chunga attracted investors with the allure of profits from crypto asset mining, but the only thing that HyperFund mined was its investors’ pockets.”

In exchange for a court-determined activity ban and sanctions, Brenda Chunga has consented to resolve the SEC’s allegations. The SEC aims to provide harmed investors with justice and make both leaders responsible for their deeds.