US Department of Justice files charges over $2 billion crypto fraud

The US Department of Justice has brought fraud charges against the creator and promoters of the cryptocurrency fund HyperFund (also known as HyperTech, HyperCapital, HyperVerse or HyperNation).

Three people are accused in this case: Australian Sam Lee, who lives in Dubai, as well as Americans Rodney Burton (who was detained in early January) and Brenda Chunga. The latter admitted her guilt.

According to the Department of Justice, the defendants created and promoted a cryptocurrency fund on the Internet, promising investors daily passive income of 0.5 per cent to 1 per cent until their deposits were doubled or even tripled.

The organizers promised to cover interest payments through large-scale Bitcoin mining. In fact, the fund did not conduct any mining operations. Moreover, the fund did not actually exist under any of the above names.

The project was not registered anywhere as a legal entity. The organizers of the scheme simply launched a website on the Internet, and investors’ funds were transferred to the personal cryptocurrency wallets of the attackers.

In July 2021, the fictitious fund began blocking users from withdrawing funds. According to the Department of Justice, in total, investors lost $1.89 billion from the fraudulent activities of criminals.

All defendants face up to five years in prison.