Sam Lee Caught in Crypto Fraud Case, US Alleges Billion Dollar Losses!

Jakarta, Pintu News – In the latest development, Sam Lee, a crypto entrepreneur from Australia, and two Americans, Rodney Butron and Brenda Chunga, have been accused of a massive fraud.

They allegedly founded HyperFund, which is also known by names such as HyperTech, HyperCapital, HyperVerse, and HyperNation, and defrauded investors by promising huge profits from crypto mining activities that never happened.

Check out the full news below!

HyperFund: The Sweet Promise of Investment that Led to Fraud

The US Department of Justice revealed that from June 2020 to November 2022, the trio offered investment contracts through the HyperFund platform. They used promotional materials that falsely stated that members who purchased memberships would earn daily passive income from 0.5% to 1% until their investments doubled or tripled.

Court documents show that HyperFund promised to pay investors from large-scale crypto mining profits. However, no mining operations existed. Since July 2021, HyperFund has stopped investors’ withdrawals, which caused panic among them.

Also read: CleanSpark Joins S&P SmallCap 600 Index, What’s the Future of Crypto Mining?

Sam Lee and Co. face up to 5 years in prison

Sam Lee, 35, is charged with conspiracy to commit securities fraud and wire fraud. If convicted, he could face up to five years in prison.

Meanwhile, Rodney Butron was charged with conspiracy to operate an unlicensed money transfer business, which carries a maximum sentence of five years in prison for each count.

Brenda Chunga has pleaded guilty to charges of conspiracy to commit securities fraud and wire fraud and faces a maximum sentence of five years in prison. A US federal district court judge will determine the sentencing decision, taking into account the US Sentencing Guidelines and other statutory factors.

Read also: Strategy’s New Strategy: $21 Billion Fundraising Plan for Bitcoin Investment!

Sam Lee’s Long Trail of Scandals in the Crypto World

Before HyperFund’s troubles, Sam Lee founded Blockchain Global, once one of the country’s leading crypto exchanges. After the company’s failure, former customers are now seeking compensation.

In October last year, the liquidator of Blockchain Global, ACX.io, reported Lee to Australia’s corporate watchdog, ASIC, for alleged violations of the Corporations Act.

Investigations by the 7.30 program also found that Lee was involved in several failed ventures overseas, including a multi-level marketing scheme known as HyperVerse, which has changed its name several times. This scandal adds to the long list of scams involving crypto worldwide.

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Reference

• ABC News. Australian Sam Lee charged over cryptocurrency fraud scheme. Accessed on March 12, 2025
• Featured Image: Generated by AI