Dive into Ethdan.me, your personal guide to theEthereum blockchain, featuring expert insights, breaking news, and in-depth analysis from a seasoned developer. Explore DeFi, NFTs, and Web3 today!
Featured Story
- Get link
- X
- Other Apps
Unveiling the $1.89 Billion HyperFund Cryptocurrency Scam: Legal Ramifications and Plea Deal
An Australian and two Americans have been charged with orchestrating a $1.89 billion cryptocurrency scam based around a purported DeFi platform called HyperFund, as announced by the U.S. Department of Justice on Monday. The DOJ accused Australian citizen Sam Lee of co-founding HyperFund, with Rodney Burton and Brenda Chunga promoting it, collectively defrauding investors of a staggering $1.89 billion by falsely claiming that investment returns would stem from non-existent cryptocurrency mining operations.
Alleged Fraud Scheme Details
- Timeframe: From June 2020 to November 2022
- False Claims: HyperFund offered and sold investment contracts to the public, making false claims including providing daily passive rewards of 0.5% to 1% to investors until doubling or tripling the initial investment.
- Payment Source: HyperFund claimed payments would be from revenues generated by large-scale crypto mining operations that did not actually exist.
- Withdrawal Issues: HyperFund began blocking investor withdrawals from at least July 2021.
Legal Charges and Plea
- Charges: Lee and Chunga are charged with conspiracy to commit securities and wire fraud, while Burton is charged with running an unlicensed money transmitting business.
- Guilty Plea: Chunga pleaded guilty.
- Potential Sentence: The trio faces a maximum sentence of five years in federal prison if convicted.
Multiple Aliases
- Known as: HyperFund is also known as HyperTech, HyperCapital, HyperVerse, and HyperNation.
The U.S. Attorney Erek L. Barron for the District of Maryland emphasized the severity of financial frauds, warning that if an investment opportunity sounds too good to be true, it likely is. The Justice Department, along with law enforcement partners, vow to hold perpetrators accountable for fraudulent schemes like this one. As cryptocurrency crimes continue to pose challenges, the Department of Justice remains vigilant in combating such illegal activities.
- Get link
- X
- Other Apps
Trending Stories
Unveiling the Journey of Digital Currency Group: A Deep Dive into the Rise and Challenges of a Crypto Behemoth
- Get link
- X
- Other Apps
BLUR Token Surges 30% After Season 2 Airdrop and Binance Listing
- Get link
- X
- Other Apps
Revolutionizing Cancer Detection: Hands-On with Ezra's AI-Powered MRI Scanner
- Get link
- X
- Other Apps
Unconventional Encounters and Eccentricity: Exploring Art Basel's NFT Art Extravaganza at Miami Beach
- Get link
- X
- Other Apps
AI in the Legal System: Chief Justice Roberts Highlights Potential and Risks
- Get link
- X
- Other Apps
Comments
Post a Comment