Summary
The Securities and Exchange Commission (SEC) has charged two leaders of HyperFund, a crypto pyramid scheme that raised over $1.7 billion. Sam Lee and Brenda Chunga were charged for promoting fraudulent “membership” packages with guaranteed high returns from crypto asset mining and associations with a Fortune 500 company. Chunga settled with the SEC, while Lee faces litigation. The US Attorney’s Office of Maryland also announced criminal charges against both individuals. Chunga pleaded guilty to conspiracy to commit wire fraud and securities fraud. Lee has been linked to another alleged crypto scheme called “HyperVerse.”
Key Points
1. The Securities and Exchange Commission has charged two leaders involved in HyperFund, an alleged crypto pyramid scheme that raised over $1.7 billion.
2. Sam Lee and Brenda Chunga were charged for their involvement in promoting HyperFund “membership” packages that claimed to guarantee high returns from the scheme’s crypto asset mining operations and associations with a Fortune 500 company.
3. Brenda Chunga, also known as Bitcoin Beautee, settled with the SEC over fraud and unregistered offering charges, while Sam Lee faces litigation. The US Attorney’s Office of Maryland has also announced criminal charges against both individuals.