Charges of conspiracy to commit fraud have been brought in the US against blockchain investor Sam Lee for his role in HyperVerse cryptocurrency schemes. HyperVerse investment schemes were subsequently referred to in related court documents as a “pyramid and Ponzi scheme” that was allegedly designed to defraud participating investors out of their hard-earned cash. The alleged fraud is currently estimated at $1.89billion (£1.49billion) and involves thousands of unsuspecting victims. Lee is now facing up to 5 years in jail if he is successfully convicted, with the HyperVerse fraud being described by Maryland District Attorney Erek L Barron as “staggering”.
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At the time of writing, it is understood that complaints against Lee have been filed in both the US criminal courts, and in the civil courts – the latter of which has been brought by the US Securities Exchange Commission, who allege that Lee and his co-conspirators sought to use HyperVerse scams to “unjustly enrich themselves” at the expense of investors who were lured into parting with their money based on false claims.
Simultaneously, other charges that also relate to HyperVerse have been filed against Brenda Chunga. It is understood that Chunga has already pleaded guilty to a charge of conspiracy to commit securities and wire fraud for the role that she played in HyperVerse.
Whilst the charges have been brought in the US, it is noted that the HyperVerse scheme was a global entity, impacting thousands of victims around the world. It is stated in the SEC complaint against Lee and Chunga that it is estimated the losses to US citizens is in the millions, whilst HyperVerse has raised over $1.7billion (£1.33billion) from victims worldwide, leaving the duo open to further international investigations. The criminal court documents, however, estimate the losses higher at $1.89billion (£1.48billion).
Whilst the schemes run by Lee and his co-conspirators have become known by the most commonly used name of HyperVerse, there are, in fact, a number of other alleged scams that have been operating under the HyperTech bracket, all of which are now subject to the charges and ongoing investigations. These include crypto schemes operating under the names HyperVerse, HyperCapital, HyperFund and HyperNation, all run by the HyperTech group, of which Sam Lee was chairman and co-founder alongside Ryan Xu, who is not named in court documents.
Charges were brought when it came to light that HyperVerse investors were experiencing an unusual level of losses, news that they were using a phoney chief executive officer for the launch of the scheme, and, most notably, links that were discovered between HyperVerse and collapsed cryptocurrency company Blockchain Global – another company where Lee was a director that also involved investors losing funds.
Between June 2020 and November 2022, memberships to HyperVerse were sold using a series of misinformation. HyperVerse was yet another case of founders, in this instance Lee and Chunga, luring prospective investors using false promises, misleading information about guaranteed high returns, and complete manipulation of their clientele to line their own pockets.
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If you have fallen victim to the HyperVerse scam or related HyperTech schemes involving Sam Lee and Brenda Chunga, we may be able to help recover your losses. Get in touch today for a free, no-obligation chat with one of our recovery experts.