The SEC is suing Sam Lee and Brenda Chunga for participating in the $1.7 billion HyperFund crypto fraud, breaking the law, and deceiving investors.
In connection with HyperFund, an accused cryptocurrency fraud that amassed over $1.7 billion, the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Brenda Chunga and Sam Lee. They are both facing federal charges for violating anti-money-laundering rules by marketing fraudulent “membership” schemes that promised large profits.
Supposedly, HyperFund’s investors were duped by Lee and Chunga, who were associated with a Fortune 500 business and promised huge earnings from cryptocurrency mining. In relation to this, the SEC claimed that “the only thing they were mining was their investors’ pocket.”
The SEC and Chunga, or Bitcoin Beautee, came to an agreement where Chunga would pay penalties and refrain from future legal violations. Nevertheless, the court will rule on these penalties at a later date. Notably, the court’s permission is still necessary for this agreement to go through.
Meanwhile, Lee is facing legal action from the SEC for violations of fraud and registration rules. They want him to cease doing this, repay the money he gained illegally, and pay further penalties.
In addition to the SEC, Lee and Chunga have been indicted for wire and security fraud by the Maryland U.S. Attorney’s Office. Chunga came clean about having planned this.
Another suspected fraud targeting individuals in Asia, Africa, and the Pacific, HyperVerse, was also connected to Lee. According to the SEC, Lee might be up to no good in other cryptocurrency frauds.
Also Read: Crypto Draws Chinese Investors Amid Economic Uncertainty January 29, 2024
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