#Write2Earn SEC Accuses HyperFund Operators of Defrauding Over $1.7 Billion from Global #investors .SEC Accuses HyperFund Group of FraudThe U.S. Securities and Exchange Commission (SEC) has recently announced criminal charges against individuals operating the $1.7 billion Ponzi scheme model of HyperFund.The press release is posted on the SEC's website.According to the indictment, Xue Lee and Brenda Chunga, also known as Sam Lee and Bitcoin Beautee, raised over $1.7 billion from global investors since June 2020.During that time, the two individuals promoted HyperFund as an investment channel with attractive returns. However, in reality, the company operated as a disguised multi-level marketing scheme. By 2022, the project had unraveled, and investors seemingly suffered significant losses.Gurbir S. Grewal, the head of SEC's enforcement division, stated:Today's case is yet another example of non-compliance in the crypto space, promoting get-rich-quick schemes without providing investor protections required by federal securities laws.SEC has filed a complaint in the Maryland District Court, accusing Lee and Chunga of violating anti-fraud and registration provisions of federal securities laws. The Maryland U.S. Attorney's Office has also criminally charged these individuals.As of now, Chunga has pleaded guilty and agreed to pay civil penalties as determined by the court.HyperFund is one of the smaller brands in the #networks of fraudulent companies, alongside HyperCapital, HyperVerse, and HyperTech. Earlier this month, the U.S. government ordered the arrest and indictment of Rodney Burton, who embezzled over $7 million through a fraudulent investment program in #Hyperverse .The founders of HyperTech, including Lee and Ryan Xu, also established the company Bitcoin Blockchain Global in Australia. It is reported that this company is burdened with a debt of $58 million.Disclaimer. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.🗣🗣Empower Our Mission: Tips For Dedicated Service. 🗣🗣👉Users are encouraged to support the mission by offering generous tips.🗣This empowers creators to work even harder, ensuring the continued delivery of top-notch investment advice. #TrendingTopic

Allegations have surfaced from both the U.S. Securities and Exchange Commission (SEC) and a grand jury, casting HyperVerse into the spotlight as a purported crypto scam program.
Accusations outlined in a lawsuit and criminal indictments suggest that HyperVerse orchestrated a fraudulent crypto investment scheme totaling $2 billion.
Under the guise of a fake CEO, the online investment venture allegedly deceived investors with promises of high returns and low risk.
HyperVerse, in collaboration with associated entities like HyperFund, HyperCapital, and HyperTech, allegedly devised and executed this large-scale crypto scam.
Key figures, including Xue Lee (aka Sam Lee) and Brenda “Bitcoin Beautee” Chunga, purportedly promoted investment packages while misappropriating funds for personal gain.
Chunga, having agreed to settle SEC charges, faces civil penalties, while criminal charges of conspiracy to commit securities fraud and wire fraud have been levied against both her and Lee by the U.S. Attorney’s Office for the District of Maryland.
The SEC further alleges that the duo circulated fabricated media appearances and enlisted a hired actor to pose as HyperVerse's CEO.
In a breakdown provided by the SEC, Chunga reportedly diverted funds for personal use, acquiring luxury items and properties, while Lee amassed a significant sum in crypto assets.
Disclaimer: While Voice of Crypto aims for accuracy, it does not assume liability for any discrepancies. Cryptocurrencies carry inherent volatility, necessitating informed decision-making.
#SEC #Crypto2024 #cryptocurrency #Hyperverse

Rodney Burton, aka “Bitcoin Rodney”, was arrested in Florida on January 4th, 2024.Burton has been indicted on HyperFund fraud charges, filed as part of a wider criminal case in Maryland. Following Burton’s arrest, he made his initial appearance in the Southern District of Florida.Burton (below👇🏾) was ordered moved to the District of Maryland, where multiple HyperFund related indictments are believed to have been filed under seal.An IRS agent affidavit filed in support of Burton’s Complaint cites a “network of HyperFund promoters”, but at this stage it’s unclear who else has been charged.Presumably the broader HyperFund criminal case extends to co-founders Ryan Xu (aka Zijing Xu) and Sam Lee (aka Xue Lee).Getting back to Burton, on January 5th he invoked his right to remain silent. Then on January 8th the DOJ moved to reseal the original docket filing (details of the case).This was approved later the same day. Thankfully Sarah Martin at the Guardianwas able to access the filing between Burton’s arrest and the resealing. She was kind enough to provide BehindMLM a copy.As per the IRS supporting affidavit, Burton, as a promoter of HyperFund, has been charged with:operating an unlicensed money transmitting business andconspiracy to commit operating an unlicensed money transmitting businessThe joint IRS-DOJ investigation into HyperFund is part of a broader investigation into the HyperTech Ponzi schemes.These Ponzi schemes include:HyperCapital – launched in 2020 following the collapse of HyperCash;HyperFund – launched later in 2020 following the collapse of HyperCapital;Hyperverse – launched in 2021 following the collapse of HyperFund; andHyperNation – launched in 2022 following the collapse of HyperverseHyperNation itself collapsed in May 2023. In July 2023 Sam Lee claimed he was “rebuilding Hyperverse” but, as far as I know, nothing came of it.Cited as part of a “network of HyperFund promoters, the IRS affidavit states Burton and his co-conspiratorsmade fraudulent promotional presentations to investors and potential investors.In those presentations, promoters touted HyperFund’s investment programs, including the purported returns that prospective investors could earn from investing with HyperFund.Among other representations, HyperFund falsely claimed that investors who purchased “memberships” would receive between 0.5% to 1% daily in passive rewards until HyperFund doubled or tripled the investor’s initial investment.HyperFund did not have any such operations.To the extent investors saw the accrual of any rewards, those investors were paid with funds collected from more recent investors.Beginning in or about July 2020—shortly after HyperFund was established—and through in or about January 2022, BURTON accepted U.S. dollars from investors in HyperFund, in the form of checks or wire transfers.In exchange for those payments and a three percent fee, BURTON transferred a purportedly equivalent amount of Tether cryptocurrency and/or HU from his HyperFund account to the investors’ HyperFund accounts.BURTON communicated with other HyperFund promoters regarding accepting U.S. dollars in exchange for Tether and/or HU.He advised Individual 1, a resident of Anne Arundel County and another HyperFund promoter, to instruct investors to send U.S. dollars (via wire or check) with the memo line “Consultation/Training,” even though no consulting services were rendered.BURTON told Individual 1 that the reason for so instructing investors was to avoid drawing scrutiny from banks, as the banks might shut down their accounts.On April 14, 2021, at 8:52 a.m., Individual 2 texted BURTON “to make sure nothing is going on with Hyperfund” because, among other reasons “[y]ou said don’t send anymore money up let you catch up.”Two minutes later, at 8:54 a.m., BURTON responded saying “Lol, no nothing is wrong. I said let me catch up causeI got so many checks that ppl are sending me. I’m adding to my portfolio. I still haven’t finished funding the ones I got.”From this we can surmise that these co-conspirators are cooperating with authorities (as per the original motion to seal Burton’s Florida docket, Burton was unaware of the case prior to his arrest). Whether the cited individuals have also been arrested remains unclear.In March 2021, one Maryland victim cited in the affidavit lost $40,000 via wire transfer to Burton Holdings Co. An additional $10,000 was then wired to The Bit Group LLC.In April 2021, the victim’s wife would go on to wire an additional $20,500 to Burton Holdings Co.While this is unlikely to be the total amount Burton stole through the HyperTech Ponzi schemes, the IRS affidavit pegs initial ill-gotten gains at $7.8 million.I have reviewed bank records associated with BURTON’s personal bank accounts and the accounts for the companies over which he has control.Analysis of these records show that from June 2020 through January 2022, BURTON received 562 wire transfers or cashier’s checks, totaling $7,851,711, from individuals who wished to invest in HyperFund.An analysis of these payments shows that they originated from investors in the District of Maryland and at least twenty-six other states, one U.S. territory, and Canada.The majority of funds Burton stole through HyperFund were laundered through Burton Holdings Co., a shell company registered in Maryland.If convicted, Burton faces up to five years on both criminal counts.Beyond there most certainly being other HyperTech related indictments still under seal, that’s all we know for now. I have a number for Burton’s Maryland case but the docket and filings are still under seal.It’s assumed we’ll get more details pending further HypterTech related arrests.#HyperFund #Hyperverse #HyperCash #CryptoScamAlert #Ponzi