{"id":10701,"date":"2024-01-30T12:09:06","date_gmt":"2024-01-30T12:09:06","guid":{"rendered":"https:\/\/coinengineer.io\/blog\/?p=10701"},"modified":"2024-01-30T12:09:29","modified_gmt":"2024-01-30T12:09:29","slug":"sec-charged-the-founders-of-hyperfund-with-fraud","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/sec-charged-the-founders-of-hyperfund-with-fraud\/","title":{"rendered":"SEC charged the founders of HyperFund with fraud"},"content":{"rendered":"

SEC (The Securities and Exchange Commission) charged the founders of HyperFund with fraud, alleging that the company raised more than $1.7 billion<\/strong> from investors around the world through a fraudulent investment scheme.<\/p>\n

\n

You might like:\u00a0Binance: Growing Crypto Giant in the Shadow of Regulatory<\/strong><\/em><\/span><\/a><\/p>\n<\/blockquote>\n

In a complaint filed Monday, the SEC said that Sam Lee, Xue Lee, also known as Bitcoin Beautee, and Brenda Chunga raised more than $1.7 billion<\/strong> from investors from June 2020 to early 2022.<\/p>\n

The SEC alleged that Lee and Chunga promoted HyperFund as an opportunity to invest in profitable mining operations, but that it was actually a pyramid scheme with no real source of income.<\/p>\n

The SEC<\/strong> also alleged that both Lee and Chunga \u201cknew or were reckless in not knowing\u201d that the scheme was fraudulent.<\/p>\n

The scheme collapsed in 2022, and investors lost their money.<\/p>\n

The director of the SEC\u2019s Enforcement Division explained (HyperFund)<\/span><\/h2>\n

\u201cThis case once again shows how non-compliance in the crypto space can facilitate schemes where promoters take advantage of the promise of easy money without providing the detailed investor protection disclosures required by the registration provisions of the federal securities laws,\u201d said Gurbir S. Grewal, director of the SEC\u2019s Enforcement Division.<\/p>\n

The SEC filed the complaint in federal district court in the District of Maryland, charging Lee and Chunga with violating the antifraud and registration provisions of the federal securities laws. The U.S. Attorney\u2019s Office for the District of Maryland also filed criminal charges against Lee and Chunga.<\/p>\n

Chunga previously pleaded guilty to conspiracy to commit securities fraud and bank wire fraud.<\/p>\n

She also agreed to pay restitution and civil penalties in amounts to be determined by the court.<\/p>\n

Here is a more concise translation:<\/p>\n

The SEC charged the founders of HyperFund with fraud, alleging that they raised more than $1.7 billion<\/strong> from investors through a fraudulent investment scheme. The scheme collapsed in 2022, and investors lost their money.<\/p>\n

The SEC also filed criminal charges against one of the founders.<\/p>\n

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Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don\u2019t forget to follow us on\u00a0Telegram<\/strong><\/a>,\u00a0YouTube<\/strong><\/a>\u00a0and\u00a0Twitter<\/strong><\/a> for the latest news and updates.<\/em><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

SEC (The Securities and Exchange Commission) charged the founders of HyperFund with fraud, alleging that the company raised more than $1.7 billion from investors around the world through a fraudulent investment scheme. You might like:\u00a0Binance: Growing Crypto Giant in the Shadow of Regulatory In a complaint filed Monday, the SEC said that Sam Lee, Xue<\/p>\n","protected":false},"author":1,"featured_media":10702,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4011,4012,4009,4010,4013,39,4014],"class_list":["post-10701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin-beautee","tag-brenda-chunga","tag-chunga","tag-hyperfund","tag-sam-lee","tag-sec","tag-xue-lee"],"yoast_head":"\nSEC charged the founders of HyperFund with fraud - Coin Engineer<\/title>\n<meta name=\"description\" content=\"SEC charged the founders of HyperFund with fraud, alleging that the company raised more than $1.7 billion from investors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/sec-charged-the-founders-of-hyperfund-with-fraud\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC charged the founders of HyperFund with fraud - 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