DOJ, SEC Mount Offensive Against $1.9B HyperFund Swindle

Baltimore, Maryland, Tuesday, February 7, 2024- The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) on Monday, January 29 unveiled charges against the individuals behind HyperFund, a cryptocurrency scheme accused of scamming investors out of a staggering $1.9 billion.

“A federal grand jury has returned an indictment charging Sam Lee, age 35, an Australian citizen residing in the United Arab Emirates for allegedly co-founding HyperFund, also known as HyperTech, HyperCapital, HyperVerse, and HyperNation. The indictment was returned on January 25, 2024, and unsealed today. Co-conspirator Rodney Burton, a/k/a “Bitcoin Rodney,” 54, of Miami, Florida, is charged by criminal complaint for his role as an alleged promoter of HyperFund. Co-conspirator Brenda Chunga, 43, of Severna Park, Maryland, pleaded guilty today to her role in the fraud scheme,” the US Attorney’s Office said. ¹

In a connected civil lawsuit, the Securities and Exchange Commission has brought charges against two individuals for their participation in the purported cryptocurrency pyramid scheme that crumbled in 2022.

HyperFund is charged with luring investors with promises of outrageous returns exceeding 200% per month, supposedly achieved through their proprietary trading algorithms.

However, authorities claim the scheme operated as a Pyramid or Ponzi System, using funds from new recruits to pay earlier investors while channeling millions to the founders and promoters.

Deceptive marketing tactics concealed ownership and financial operations, and price manipulation of the HYPR token to inflate gains for insiders are other accusations levied against HyperFund.

The DOJ has frozen over $20 million in assets suspected to be linked to the scheme, while the SEC seeks disgorgement of gains and civil penalties from the defendants.

The Department of Justice charges that between June 2020 and November 2022, Lee and his associates marketed investment contracts on HyperFund’s platform, asserting that investors could receive daily returns ranging from 0.5% to 1%.

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