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U.S. securities regulators charge Sam Lee and Brenda Chunga over their involvement in HyperFund, a suspected crypto pyramid scheme. The U.S. Securities and Exchange Commission (SEC) has intensified its crackdown on crypto fraud, filing charges against key figures associated with HyperFund. Sam Lee and Brenda Chunga, also known as Bitcoin Beautee, face allegations of orchestrating a fraudulent scheme that amassed over $1.7 billion.
Promising High Returns: SEC Takes Action
The SEC has taken legal action against Sam Lee and Brenda Chunga, accusing them of promoting deceptive "membership" packages that pledged lucrative returns. The charges encompass fraud and violations of federal securities laws related to unregistered offerings.
Enticing Promises and Alleged Deceptions
Lee and Chunga allegedly enticed investors with promises of substantial profits supposedly generated through HyperFund's crypto mining operations and ties to a Fortune 500 company. However, the SEC contends that the primary thing mined by HyperFund was the investments of its unsuspecting participants.
Settlement for Chunga, Litigation for Lee
While Brenda Chunga has reached a settlement with the SEC, agreeing to a permanent injunction and financial penalties pending court approval, Sam Lee faces ongoing litigation initiated by the regulatory body. The SEC seeks various remedies, including injunctions, disgorgement of ill-gotten gains, and civil penalties.
Criminal Charges and HyperVerse Connection
In addition to SEC actions, the U.S. Attorney’s Office of Maryland has brought criminal charges against both Sam Lee and Brenda Chunga. Chunga has pleaded guilty to conspiracy to commit wire and securities fraud. Meanwhile, Lee, who is an Australian citizen residing in the UAE, and Chunga, residing in Maryland, confront the legal consequences of their involvement in HyperFund. Moreover, Sam Lee is linked to another alleged crypto scheme called "HyperVerse," raising concerns about his involvement in multiple crypto-related schemes and the potential harm inflicted on unsuspecting investors. The SEC's move reflects an ongoing commitment to curbing fraudulent activities in the cryptocurrency space.