According to Acting Assistant Attorney General Nicole Argentieri of the Justice Department’s Criminal Division, the three defendants indicted by the Justice Department allege that Hyperfund’s investors received “huge amounts of profits paid from a virtual currency mining business that does not actually exist.” ” and made a false claim.
“The level of alleged fraud here is astonishing,” said Maryland U.S. Attorney Erek Baron.
Charged in the criminal case are Sam Lee, an Australian national living in Dubai, United Arab Emirates, who is accused of being a co-founder of Hyperfund, and Rodney Barton of Miami, Hyperfund’s promoter. and Brenda Chunga of Severna Park, Maryland. .
Li, 35, also known as Xue Li, is charged with one count of conspiracy to commit securities fraud and wire fraud. Burton, 54, is charged with conspiracy to operate an unauthorized money transfer business and conspiracy to operate an unauthorized money transfer business.
If convicted, both men could be sentenced to up to five years in prison.
Chunga, also known as Bitcoin Borty, pleaded guilty on Monday to conspiracy to commit securities fraud and wire fraud and could face similar maximum penalties.
Chunga has separately agreed to settle a civil lawsuit filed by the SEC for violating the anti-fraud and registration provisions of the U.S. Securities Act. As part of that settlement, she agreed to forfeit the money she earned from the scheme, as well as a civil penalty to be determined later.
According to the SEC complaint, she received more than $3.7 million from both the Hyperfund platform and investors.
“She used her income to pay for lavish personal expenses and to recruit others to the scheme by touting the potential wealth available through Hyperfund,” the complaint says. has been done.
Mr. Lee was charged by the SEC with similar violations.
HyperFund was also known as HyperTech, HyperCapital, HyperVerse, and HyperNation.
The Department of Justice alleges that from June 2020 to November 2022, Lee and his co-conspirators sold investment contracts online through the Hyperfund platform, allowing investors to double or triple their original investments. He claimed that he could earn between 0.5% and 1% every day until the Through the proceeds from large-scale cryptocurrency mining.
The Department of Justice alleges that Hyperfund began blocking withdrawals by investors in July 2021.
