The promoter of the crypto scam HyperVerse was arrested in the USA

[Brother]

In the United States, at the request of the IRS, Rodney Burton, known as Bitcoin Rodney, was detained. He is associated with the organization of the fraudulent crypto project HyperVerse for $7.85 million.

Burton was charged with operating an unlicensed money transfer provider.

Incorporated in June 2020 and unincorporated, HyperVerse has also been touted as HyperFund, HyperCapital and HyperNation.

“A network of promoters […] made fraudulent promotional presentations to investors and potential investors. "HyperFund falsely claimed that those who purchased a 'membership' would begin receiving 0.5% to 1% daily rewards until their initial investment doubled or tripled," the IRS statement said.

The creators of the scheme attributed their income to Bitcoin mining. According to the department, no such activity was carried out.

Burton received 562 transfers totaling $7.85 million, according to the IRS.

According to Guardian Australia, HyperVerse killed thousands of people and cost millions of dollars.

Journalists found that the scheme was launched by the HyperTech organization and promoted by CEO Stephen Rhys Lewis, whose existence could not be confirmed.

 

[Brother]

The US authorities accused the organizers of the HyperFund cryptocurrency scheme, in which $1.89 billion was invested, of fraud. One of the promoters of the crypto scheme admitted the charges.

According to court documents, from June 2020 to early 2022, HyperFund employees sold so-called "membership" packages, guaranteeing investors high profits from cryptocurrency mining operations and connections with a certain Fortune 500 company.

As it turned out, HyperFund had no real source of income, according to law enforcement officers. The project operated like a pyramid scheme, paying out old investors with money received from new investors. The fraudulent scheme ceased to exist in 2022, stopping the withdrawal of funds. According to the US Securities and Exchange Commission (SEC), the fund managed to raise $1.7 billion from investors, while according to federal prosecutors, this amount amounted to $1.89 billion.

Federal prosecutors have filed criminal charges against HyperFund founder Xue Lee, known as Sam Lee, and another person who promoted the project, Rodney Burton. The prosecutor's office accused them of conspiring to commit fraud with securities and electronic payments, as well as operating a money transfer business without a license. The maximum penalty for each count of these charges is five years.

In turn, the SEC filed civil charges against them. The lawsuit also mentions Brenda Chunga, known under the pseudonym Bitcoin Beautee, who was one of the main promoters of HyperFund. The SEC charged Lee and Chung with violating anti-fraud regulations and failing to register. In addition, the regulator wants the accused to return the illegally obtained funds to investors and pay a fine. Chung pleaded guilty, but the amount of the fine in the civil suit and the term of imprisonment on criminal charges for her have not yet been determined.