The U.S. SEC accuses the founders of the HyperFund program, which raised $1.7 billion, of fraud and unregistered securities offerings

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) has charged HyperFund founders Xue Lee and Brenda Chunga with fraud and unregistered securities offerings. From June 2020 to early 2022, Xue Lee and Brenda Chunga (also known as Sam Lee and Bitcoin Beautee) promoted HyperFund's "membership" packages, raising over $1.7 billion from global investors. They marketed HyperFund as an opportunity to invest in a profitable mining business, but it was actually a pyramid scheme with no real source of income, leading to the project's collapse in 2022 and significant losses for investors.

Currently, Chunga has admitted to conspiring to commit securities fraud and wire fraud. He has also agreed to settle these charges and pay restitution and civil penalties in amounts to be determined by the court.