Sam Lee is an Australian blockchain entrepreneur who is the key figure behind the HyperVerse and HyperFund crypto platforms. However, these platforms have been alleged to be multi-level marketing Ponzi schemes promising returns that do not exist. On January 29, 2024, Sam Lee was accused of nearly $2 billion worth of crypto fraud. He is facing charges from both the U.S. Securities and Exchange Commission and the U.S. Department of Justice.
Regardless of the charges against him, there are rumors that Lee is still launching fresh crypto scams from his refuge in Dubai. Even though Sam Lee was a respected person in the blockchain space, he is now a controversial figure. He was even the former chairman of the HyperTech group but due to US charges of conspiracy to commit fraud in connection with the alleged operation of the HyperVerse crypto investment schemes, he lost his fame.
What was Sam Lee accused of?
Sam Lee was accused of criminal complaint to commit securities and wire fraud, but his problems don’t stop there. The US Securities and Exchange Commission (SEC) has filed a separate civil lawsuit against him, accusing him of fraud and unregistered sale of securities violating the US Securities Act. These charges were part of an ongoing investigation into the HyperVerse and HyperFund crypto schemes, where both operations were run under multiple names.
Because of this acquisition and charges, Sam Lee suffered a huge fall from grace right after he was declared the ‘crown prince of Bitcoin’ in Australia. Following this investigation, it was later found that Lee used a fake CEO to launch the HyperVerse scheme. Also, it was uncovered that Lee was the director of the connections to the collapsed Australian crypto company Blockchain Global.
The SEC claims that Lee and his co-conspirators operated a multi-level marketing pyramid scheme that raised over $1.7 billion globally and the loss could have been higher, estimating the HyperFund scheme alone defrauded investors around $1.89 billion. Also, the US-based promoter Brenda Chunga pleaded guilty to conspiracy charges, convincing investors by promising high returns from crypto asset mining.
It was found that Lee and Chunga sold HyperFund membership from June 2020 to November 2022, which is a 2.5-year span. They both made false promises about guaranteed high returns and the regulatory commission states that Lee used his business background and Australian connections to attract high-net-worth investors.
Where is the multi-billion crypto fraudster Sam Lee now?
Sam Lee has been charged with conspiracy to commit fraud in the United States for his role in the HyperVerse crypto investment schemes. The Prosecutors with the Department of Justice (DOP) described HyperVerse as a pyramid and Ponzi scheme that defrauded investors of $1.89 billion and if convicted, Lee will face up to five years in prison. Despite the fact that the US charged Sam Lee with allegedly running a $2 billion Ponzi scheme, he has denied any wrongdoings and is currently living in Dubai.
The case file shows that Lee, who lived in Dubai since 2021, is yet to appoint a defense attorney and Guardian Australia has contacted him for comment. However, he previously denied HyperVerse was a scam and even claimed that he was involved in the fund’s management and technology side of the business. Since Lee is taking refuge in Dubai, it is unclear whether he will ever face the charges from the United States.
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Conclusion
The Australian blockchain entrepreneur Sam Lee has been charged with conspiracy to commit fraud in the United States, making him a controversial figure in the crypto space. Charges were pressed against him after a Guardian Australia investigation revealed details regarding the scheme’s operation, including widespread investor losses and the use of a fake executive officer for the initiative of the HyperVerse scheme and HyperVerse’s links.
The criminal complaint estimates that the losses were higher and that the wire fraud scheme obtained around $1.89 billion from victim-investors worldwide. Sam Lee’s reputation and public-facing crypto asset persona have deceived investors into believing that HyperFund was not a scam and that his appearance and speech during its launch were an offer of securities. However, he is seeking refuge in Dubai, and there are rumors that Lee is still launching fresh crypto scams. This makes it unclear whether he will be held accountable for what he is accused of.