TechFlow reports that the SEC has accused the founders and key promoters of HyperFund of orchestrating a pyramid scheme involving over $1.7 billion in crypto assets. Xue Lee (also known as Sam Lee) and Brenda Chunga (also known as Bitcoin Beautee) are alleged to have deliberately attracted investors by promising high returns.
The SEC stated that HyperFund was in fact a pyramid scheme with no legitimate source of revenue. The platform collapsed in 2022, leaving investors unable to withdraw their funds.
The SEC has filed a federal lawsuit seeking permanent injunctions, bans on participation in multi-level marketing and crypto asset offerings, disgorgement of ill-gotten gains, and civil penalties. Brenda Chunga has agreed to settle, paying disgorgement and penalties.
In addition, Brenda Chunga faces criminal charges for conspiracy to commit securities fraud and wire fraud.
