Many investors have reported losses thanks to a cryptocurrency investment scheme called HyperVerse, which operated in Australia from around 2018 to mid-2023. Several financial watchdogs issued warnings about the company, including the UK, Canada, Germany, and New Zealand. The Hungarian central bank warned in August 2022 that the HyperVerse project was a “suspected pyramid scheme… behind which there is no real economic activity… There is a significant chance that investors may permanently lose part or all of their invested capital.”
Estimates by Chainalysis suggest that victims have lost a combined $1.3 billion (with a B) to the scam thus far.
The scheme’s operators Sam Lee and Zijing “Ryan” Xu were also behind Blockchain Global, a collapsed company that operated the Australian ACX crypto exchange that collapsed in 2019. The company is in liquidation, and creditor claims are expected to surpass $50 million. Although Lee and Xu were reported for investigation to the Australian Securities & Investments Commission, ASIC did not take any action.
Lee has also been involved in other investment platforms, including two that are currently active: StableDao and We Are All Satoshi. Both platforms were the target of cease and desist letters from the Californian Department of Financial Protection and Innovation in September 2023, who described them both as “fraudulent pyramid and Ponzi scheme[s]”.
“Investors lose millions as crypto schemes operate unchecked in Australia”
, The Guardian
“‘They are so convincing’: Vera Gazzard lost her life savings to HyperVerse”
, The Guardian
“Crypto Scam Revenue Dropped 46% in 2022, While Blockchain Analysis Finds Links Between What Appear to be Distinct Scams”
“More than $50 million owed to creditors after collapse of Blockchain Global’s cryptocurrency exchange”
, ABC News
This content was sourced from Web3IsGoingGreat