TL;DR
- The U.S. Securities and Exchange Commission (SEC) is taking legal action against Sam Lee and Brenda Chunga for their involvement in the alleged cryptocurrency pyramid scheme, HyperFund, which raised over $1.7 billion.
- Lee and Chunga are facing charges related to promoting fraudulent membership packages, promising high returns to investors, and violating federal securities laws.
- Legal actions reveal Sam Lee’s connection to another alleged crypto scheme, HyperVerse, raising concerns about his involvement in multiple frauds and potential harm to investors.
The U.S. Securities and Exchange Commission (SEC) has initiated legal proceedings against two prominent figures associated with HyperFund, an alleged cryptocurrency pyramid scheme that managed to raise over $1.7 billion. The charges are directed at Sam Lee and Brenda Chunga, also known as Bitcoin Beautee, who are accused of promoting fraudulent membership packages, making promises of substantial returns to investors, and violating federal securities laws.
The case revolves around the alleged manipulation by Lee and Chunga, enticing investors with enticing promises of substantial profits supposedly generated from HyperFund’s crypto asset mining operations and its purported affiliations with a Fortune 500 company. However, the SEC contends that the only thing mined by HyperFund was the pockets of its investors.
Brenda Chunga, operating under the pseudonym “Bitcoin Beautee,” has reached a settlement with the SEC regarding charges of fraud and unregistered offerings. As part of the agreement, she commits to being “permanently enjoined from future violations of the charged provisions and certain other activities.” Chunga is also obligated to pay disgorgement of ill-gotten gains and civil penalties, with specific amounts to be determined by the court at a later date, subject to court approval.
One of the Scammers From HyperFund Would Also be Involved in Multiple Scams, Including HyperVerse
In contrast, Sam Lee is facing litigation initiated by the SEC, accused of violations of anti-fraud and registration provisions of federal securities laws. The SEC’s complaint seeks permanent injunctive relief, conduct-based injunctions to prevent participation in multi-level marketing or crypto asset offerings, disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.
In addition to the SEC’s actions, the U.S. Attorney’s Office in Maryland has brought criminal charges against Sam Lee and Brenda Chunga. Chunga has already pleaded guilty to conspiracy to commit wire and securities fraud.
It is noteworthy that these legal actions also shed light on Sam Lee’s connection to another alleged crypto scheme called “HyperVerse,” which reportedly targeted investors in Asia, Africa, and the Pacific. The SEC, by taking action against Lee, expresses concerns about his alleged involvement in multiple cryptocurrency-related schemes and the potential harm caused to unsuspecting investors.
