DOJ Charges Founder and Top Promoters of Alleged $1,890,000,000 Crypto Ponzi Scheme That Promised High Returns

DOJ Charges Founder and Top Promoters of Alleged ,890,000,000 Crypto Ponzi Scheme That Promised High Returns

The U.S. Department of Justice (DOJ) has slapped three individuals with criminal charges related to their alleged involvement in a crypto pyramid scheme that looted $1.89 billion from victims.

Australian native Sam Lee allegedly co-founded “HyperFund,” an online investment platform that falsely claimed investors who purchased “memberships” would receive between 0.5% to 1% daily in passive rewards until the company either doubled or tripled their initial investment.

HyperFund fraudulently claimed the rewards came from large-scale crypto mining revenues, according to a new press release from the DOJ. Allegedly, the mining operation didn’t exist, and the platform allegedly started to halt customer withdrawals in July 2021.

Lee was charged with conspiracy to commit securities fraud and wire fraud and faces a maximum sentence of five years in prison.

The DOJ also charged Miami resident Rodney Burton with one count of conspiracy to operate an unlicensed money-transmitting business and one count of operating an unlicensed money-transmitting business. Burton allegedly promoted HyperFund.

One of the platform’s other promoters, Maryland resident Brenda Chunga, pled guilty to conspiracy to commit securities fraud and wire fraud and faces up to five years in prison. Chunga also agreed to pay at least $3 million in restitution to victims.

In a parallel action, the U.S. Securities and Exchange Commission (SEC) also charged Lee and Chunga with violating the anti-fraud and registration provisions of federal securities laws.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney



https://dailyhodl.com/2024/01/31/doj-charges-founder-and-top-promoters-of-alleged-1890000000-crypto-ponzi-scheme-that-promised-high-returns/

Recommended For You

About the Author: Daniel