Tag Archives: Hyperverse

Victoria Police asked to investigate HyperVerse information in 2020, but referred the case back to Asic 22 months later.

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Australia's corporate watchdog, the Australian Securities and Investments Commission (ASIC), referred information about a US$1.89 billion “pyramid scheme” known as Hyperverse to Victoria Police in 2020. But no action was taken, and the watchdog referred it again almost two years later.

The ASIC referred the company to Victoria Police for “possible criminal fraud” after concerns were raised with corporate regulators about its affiliate company Blockchain Global. The HyperVerse crypto investment scheme was operated by HyperTech Group, founded by two of Blockchain Global's directors, Sam Lee and Ryan Xu.

An ASIC spokesperson said, “Asic provided information relating to the HyperVerse matter to Victoria Police in 2020 after being informed that VicPol was investigating the HyperVerse matter. [alleged] and after determining that it was not a financial product and that the police were in the best position to investigate. [alleged] There is a possibility of criminal fraud.”

Neither ASIC nor Victoria Police provided further details about the alleged act.

“ASIC takes seriously any fraudulent activity that harms investors and we have the authority to act against fraudulent activity in relation to financial products and services,” the spokesperson said. “When we become aware of conduct that is outside of our jurisdiction, we seek to refer information about that conduct to the appropriate authorities.”

However, Victoria Police said it had assessed that information and decided after almost two years that ASIC was “best placed to investigate further”.

Meanwhile, Blockchain Global went bankrupt and owed creditors $58 million, while Mr. Xu and Mr. Lee were allegedly involved in a “global multi-level marketing and marketing of crypto-assets” as per the U.S. Securities and Exchange Commission. Mr. Xu is not named in the SEC's lawsuit.

A Victoria Police spokesperson confirmed it received a referral from ASIC in April 2020, but the matter was not assessed until 2021. After that assessment, “it was decided that the lead agency should be ASIC”.

The matter was transferred back to ASIC in January 2022. Asked why the process took 22 months, a Victoria Police spokesperson said: “For matters of this nature, the first step is to determine whether a criminal offense has been committed and whether it is best to approach Victoria Police. Depending on the situation, it may take some time.”

A spokesperson declined to comment on the content of the evaluation.

Mr. Ashiq said he believes he is acting on this referral. “ASIC understands that this matter is being actively considered by VicPol. Ultimately, VicPol is best placed to explain its decision to refer this matter back to ASIC,” the spokesperson said.

“At the time VicPol referred the matter back to ASIC, an external administrator had been appointed to Blockchain Global. ASIC is currently considering the information contained in the liquidator’s report relating to this scheme.”

At the time ASIC was referred to Victoria Police, the first Hyper scheme, ‘HyperCapital’, was underway and launched in Hong Kong in 2019. Meanwhile, HyperCapital was rebranded to HyperFund in 2020 and became HyperVerse in December 2021.

Mr. Lee denied claims that the scheme was a fraud and defended his role at HyperVerse as limited to the technical and financial management aspects of the business. Members were offered memberships to HyperVerse, where they could explore the HyperVerse ecosystem. There were returns of 0.5% per day and a 300% return over 600 days. HyperUnits were linked to various crypto tokens and could be withdrawn and converted into other cryptocurrencies once matured.

Mr Lee also did not mention that he had resigned from Blockchain Global’s board of directors and that the company was no longer in business.

According to court documents, Brenda Chunga, a senior U.S. promoter charged and pleaded guilty to conspiracy to commit securities fraud and wire fraud, hired Hypertech Group and Blockchain Global to potentially promote the scheme. Mr. Chunga emphasized his connection with Blockchain Global to give the HyperFund project credibility and increase security of investment.

Ashiq defended his failure to issue a warning about the Hyperfund and Hyperverse investment schemes. Mr. Lee declined to answer questions from Guardian Australia, and Mr Hsu could not be reached for comment.

Source: www.theguardian.com

Retired employee sues bank after losing virtual currency fund in Hyperverse

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Catalina de Solieu had high hopes for a comfortable retirement. She had completed her career as a nurse, paid off the mortgage on a property in regional Victoria, and had savings in the bank.

A friend from a network marketing group introduced her to an investment opportunity called Hyperfund, with the promise of using the returns as a source of income for her retirement. After initially investing small amounts, she eventually invested $80,000.

Within a few months, the money vanished.

“I lost my home,” she says three years later. “I lost all my money. I couldn’t pay the mortgage. When I actually sold the house and paid off the rest of the mortgage, I was in a lot of debt. By that time I had no money. There wasn’t much left.”

Now 71, de Solieu says she lives on a pension that barely covers her rent.

“Right now, I don’t have a nickel in the bank or in my pocket. I can’t go to the dentist. I can’t get my car serviced properly.

“It goes on and on. I can’t get it either. [hearing] Checked out. I even had a friend deliver groceries to my door. I have nothing left. ”

This experience left de Solieu feeling depressed and suicidal.

“I became so depressed that I wanted to commit suicide. It’s a terrible thing for anyone to admit, but that’s how I felt.

“I still wake up every morning and sob. Ever since that happened, every morning I can’t get up because I don’t forgive myself and I want to beat myself up.”

After losing $70,000, Des Solieu was unable to pay his dentist fees. Photo: Steve Wormersley/The Guardian

Mr. De Solieux is one of several Australians who have suffered losses from the HyperVerse project and is taking part in a legal effort to recover the losses from the banks that oversaw the transfer of money to the project.

UK-based investment fraud law firm Wealth Recovery Solutions has identified an Australian who transferred funds to a cryptocurrency exchange to become a member of Hyperfund, later renamed Hyperverse. This person is leading Mr. Des Solieu’s legal action.

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Source: www.theguardian.com

HyperVerse cryptocurrency targeted developing countries before collapsing, leading to investor ‘suicides’

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The HyperVerse cryptocurrency scheme targeted investors in developing countries in Asia, Africa, and the Pacific until it eventually collapsed, leaving many people unable to access their funds.

One investor said that in Nepal, some people who took out bank loans to buy Hyperverse packages felt suicidal when they could not withdraw their money, and in some cases even committed self-harm. .

The promoter of UK-based HyperVerse, which toured five African countries in 2022, told a Ghanaian radio station that millions of people around the world are trying to understand blockchain technology “without really understanding it.” He said he has benefited from it.

HyperVerse, which was linked to a previous scheme known as HyperFund, was founded by Australian blockchain entrepreneur Sam Lee and his business partner Ryan Hsu, two of the founders of bankrupt Australian company Blockchain Global. ) was launched by.

Despite one overseas regulator warning that they could be a “scam” and another calling HyperVerse a “suspected pyramid scheme”, a Guardian Australia investigation found , revealed widespread losses from a scheme that escaped regulator warnings in Australia.

This push to expand the system, which encourages existing member states to reap financial rewards for bringing in new members, has resulted in the system spreading to hitherto untapped markets, including developing countries. It seems so.

In January 2022, the Central Bank of Nepal issued a public warning naming Hyperfund and several other unrelated schemes, encouraging people to participate in such cryptocurrency products with the promise of “high returns in a short period of time.” He said he was tempted to do so.

In a February 2023 Zoom meeting between Nepali Hyper members and Lee, the members said people were angry because they could not withdraw funds from the platform.

One member told Mr Lee that he was “sad and grumpy” and was fielding requests from people who didn’t have access to the funds he brought into the scheme.

“We really need to do something fast, you may be somewhere far away and you may not be under direct pressure, but people like us, we don’t live in the neighborhood. And our relationship has deteriorated, and whenever we do something, it’s people like us. We wake up in the morning and there’s people at the door.”

Q&A

How did the HyperVerse investment scheme work?

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Investors were offered “membership” to HyperVerse, a “blockchain community” where members could “explore the HyperVerse ecosystem.”

The minimum membership amount is USD 300, which will be converted into Hyperunits after investment.

This scheme offers a minimum return of 0.5% per day, with a return of 300% in 600 days.

Members were encouraged to “reinvest” their earnings and were provided with more Hyper Units if they did not withdraw after funds became available.

Members were also paid hyper units for recruiting new members, and were paid a referral fee on a sliding scale based on the number of people recruited. Additional commissions were paid based on the number of people these recruits subsequently recruited up to the 20th level.

Hyperunits are linked to various crypto tokens and, once matured, can be withdrawn and converted into other cryptocurrencies.

While early investors were able to make profits and withdraw money, this system has left many investors unable to access their funds.

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A Nepalese man living in the UK told Lee that some people in his home country try to commit suicide by taking out bank loans to buy the Hyperverse package, and one of his acquaintances has committed self-harm. That's what he said.

“There have also been instances where people have lent money to buy this company's packages because they were presented in such a favorable way. We know it's wrong, we urge them to do so. But…the benefits outweighed the risks, so people took out some loans from banks and packaged this project. I bought it,” said a Nepali man.

“I don’t want to name names, but there was a case of self-harm in my hometown. [in Nepal]. We have received several SOS calls. With people in this situation, it is better to take a suicidal step than to wait for this company to come up with a repayment plan. ”

In response, Mr Lee said on a Zoom call that he hoped vulnerable people would be prioritized in recovering their initial investment, but denied he was responsible.

“I don't want to say anything about these individual incidents because I'm not in a position to empathize with them. But, you know, we just have to recognize…others Many industries have been misunderstood, and this is just the newest industry to be misunderstood,” Lee said.

“And the way to prevent something like this from happening again is that we need to increase everyone's literacy about technology and how these opportunities work.”

Sam Lee, one of the founders of the failed blockchain global cryptocurrency exchange. Photo: Blockchain Global/Facebook

Lee blamed the situation on the “corporate” team behind HyperVerse.

Despite speaking at HyperVerse's official launch, he denied any involvement in HyperVerse, saying he was only involved in the fund management side through his role at HyperTech Group, of which he is chairman.

Another person who attended the February 2023 meeting challenged Mr. Lee on this claim.

“Community leaders have always projected you as a Midas-esque figure – HyperTech, HyperVerse, HyperFund, whatever, it’s Sam Lee, it’s Sam Lee, it’s Sam Lee, that’s what we do every day. Everything you’ve been told every day,” they said. Said.

In response, Lee said, “If you don't get involved, you can't completely disappear from HyperVerse.”

“The company put out misleading information, which of course management used to drive sales, so ultimately the company loses out. But I am 100% “It's not free, because if things were misunderstood, they could have always issued a press release or a statement to clarify,” he said.

www.theguardian.com