Who is Sam Lee Crypto? Sam Lee is taking refuge in Dubai as he faces mounting charges from the SEC after $1.89bn crypto fraud accusation.
Sam Lee, an Australian blockchain entrepreneur, has been charged with conspiracy to commit fraud in the United States for his role in the HyperVerse crypto investment schemes.
Prosecutors with the Department of Justice (DOJ) describe HyperVerse as a pyramid and Ponzi scheme that defrauded investors of $1.89 billion. If convicted, Lee faces up to five years behind bars.
Sam Lee Facing Charges From The DOJ And The SEC In The United States
The criminal complaint accuses Lee of conspiracy to commit securities and wire fraud. Lee’s issues don’t stop there, as the US Securities and Exchange Commission (SEC) has filed a separate civil lawsuit, accusing him of fraud and the unregistered sale of securities violating the US Securities Act.
These charges are part of an ongoing investigation into the HyperVerse and HyperFund crypto schemes. Both operations were run under multiple names, including HyperCapital, HyperFund, HyperVerse, and HyperNation.
With these charges, Lee has suffered a huge fall from grace after previously being heralded as the “crown prince of Bitcoin” in Australia. He served as chairman of the HyperTech group, which co-founded the HyperVerse and HyperFund schemes alongside his business partner Ryan Xu. Xu is not named in the court documents.
Following lengthy investigations into Sam Lee, it was discovered that he used a fake CEO to launch the HyperVerse scheme. Also uncovered were connections to the collapsed Australian crypto company Blockchain Global, where Lee was a director.
The SEC claims that Lee and his co-conspirators operated a multi-level marketing pyramid scheme that raised over $1.7 billion globally, including millions from US investors.
The criminal complaint states its belief that the losses could be even higher, estimating the HyperFund scheme alone defrauded investors of roughly $1.89 billion.
It is believed that US-based promoter Brenda Chunga, who has pleaded guilty to conspiracy charges, enticed investors by promising high returns from crypto asset mining. However, the SEC states that the only thing HyperFund “mined” was its investors’ money.
Lee and Chunga sold HyperFund memberships from June 2020 to November 2022, a 2.5-Year span. The pair made false promises about guaranteed high returns.
The SEC alleges that Lee was key in distributing HyperFund ‘memberships’. The regulatory commission says he used his business background and Australian connections to attract high-net-worth investors.
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Lee Arrested In Dubai But Denies Any Wrongdoing In Video Interview With Bloomberg
Following the issue of an Interpol Red Notice, Sam Lee willingly handed himself in to Dubai authorities in November 2024. He was detained for 60 days before being released.
After exchanging messages with Bloomberg staff, Lee arranged a sit-down video interview with the news corporation. The Australian continues to claim his innocence in the interview, posted to the Bloomberg Originals YouTube channel.
Lee states that “there is nothing wrong with multi-level marketing” and that US regulators feel crypto threatens US-backed currencies. Given the mounting evidence against Lee, it is extremely bold of him to play down any wrongdoing.
Toward the end of the interview with Bloomberg, Lee gushes over Dubai and the United Arab Emirates, claiming that its existing regulatory framework benefits the crypto space.
Lee worryingly ends his interview by stating, “there are many exciting projects on the horizon.” This leads many to believe the alleged fraudster is planning his next Ponzi scheme.
With Sam Lee taking refuge in Dubai, it is unclear if he will ever face the mounting charges from the United States.
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Who Is Sam Lee?
- Sam Lee is an Australian crypto figure being accused of nearly $2 billion worth of crypto fraud
- Lee is the key figure behind the HyperVerse and HyperFund crypto platforms
- HyperVerse and HyperFund are alleged to be multi-level marketing ponzi schemes promising returns that did not exist
- Lee is facing charges from both the U.S. Securities and Exchange Commission and also the U.S. Department Of Justice
- There are rumours that Lee is still launching fresh crypto scams from his refuge in Dubai
The post Who is Sam Lee Crypto? Where is Multi-Billion Crypto Fraudster Now? appeared first on 99Bitcoins.
