$2 billion crypto scam exposed

The U.S. Department of Justice is accusing 3 people, one Australian and two U.S., of setting up a massive fraud scheme for allegedly defrauding investors of $1.9 billion.

It was stated that an Australian named Sam Lee founded the company called HyperFund, while two Americans, Rodney Burton and Brenda Chunga, were also interested in promotion and marketing.

Prosecutor: A huge scam

Speaking on the matter, prosecutor Erek L. Barron said, "This is a huge fraud. They have incredible dimensions. Whether it's made with crypto or other financial instruments... It's too big to be believed, and I think the allegations are all true," he said.

Returns between 0.5% and 1% per day...

The fraudulent system is actually the kind we have seen in many crypto schemes before... The founders promised to pay between 0.5% and 1% daily interest to those who deposited money in the HyperFund company.

Company executives and people in charge of marketing, while receiving investments, lied that most of the revenues came from mining activities that did not actually exist. While it was stated that there were very large mining activities, the minds of investors were attracted in this way.

It was stated that the company, which continued to collect money from investors from June 2020 to November 2022, stopped withdrawing from the platform as of July 2021.

HyperFund also goes by the names HyperTech, HyperCapital, HyperVerse and HyperNation.

The Ministry of Justice also issued a warning on the matter, noting that if an investment is too good to be true, it should most likely be suspected of being a scam.

While it was informed that one of the suspects confessed to his crime, it was stated that the 3 were likely to receive 5 years in prison each.

Published: January 30, 2024 10:41Last Updated: January 30, 2024 10:44