SEC sues HyperFund founders for $1.7B crypto ‘Ponzi’ scheme
HyperFund founders Lee and Chunga sued for $1.7B crypto scam. Chunga has agreed to a settlement, pending court approval, while Lee faces legal action. Additional charges have been filed by the US Attorney’s Office. The US Securities and Exchange Commission (SEC) has taken decisive legal action against individuals allegedly involved in a crypto currency ‘Ponzi’ scheme worth $1.7 billion, associated with HyperFund, HyperVerse, and HyperTech. The accused individuals are Xue Lee, also known as Sam Lee, and Brenda Chunga, also known as Bitcoin Beautee. They are accused of orchestrating fraudulent scheme s that deceived investors and violated federal securities laws. False membership plans The lawsuit filed by the SEC on January 29, 2024, alleges that Sam Lee and Brenda Chunga engaged in deceptive practices by selling false “membership” plans to investors, promising lucrative returns that never materialized. They purportedly misled ...