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.”
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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.
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.”
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.
