Both Sam Lee and Brenda Chunga were charged for their involvement. Chunga, aka Bitcoin Beautee, settled with the SEC over the fraud and unregistered offering charges.

According to an SEC press release  issued on Monday, Lee and Chunga orchestrated a global scam scheme between June 2020 and early 2022.

The duo promoted HyperFund  as a lucrative venture tied to profitable mining operations. However, the SEC contends that the enterprise was nothing more than a pyramid scheme devoid of genuine revenue sources, accusing Lee and Chunga of either being aware of the deceit or displaying reckless disregard for the truth. The scheme eventually collapsed in 2022, leading to substantial financial losses for the investors involved.

Parallel to the SEC’s civil charges, the U.S. Attorney’s Office for the District of Maryland initiated criminal proceedings against the duo. Chunga has responded  to the allegations by conceding to a plea of guilty on counts of conspiracy to commit securities fraud and wire fraud. Chunga has consented  to resolve the SEC’s charges and is set to reimburse funds and incur civil penalties, the exact sums of which will be determined by the court.

HyperFund is identified as a minor entity within a network of dubious enterprises, which also include HyperCapital, HyperVerse, and HyperTech.

Recently, the U.S. authorities mandated the arrest and formal indictment of Rodney Burton  for misappropriating upwards of $7 million via a deceitful investment scheme associated with HyperVerse.

The founders of HyperTech, including Lee and Ryan Xu, are recognized for founding Bitcoin Blockchain Global in Australia, a company currently grappling with a substantial debt load estimated at $58 million.

Source