Crypto pyramid schemes thought to have stolen billions go unchecked

  protos.com 14 December 2023 18:55, UTC

Two alleged crypto pyramid schemes estimated to have racked up billions in combined losses for investors have reportedly been left unchecked in Australia despite warnings from numerous financial watchdogs around the globe.

The schemes, which have operated under various names, including HyperFund and HyperVerse, are part of the wider HyperTech group run by Sam Lee and Zijing ‘Ryan’ Xu.

HyperTech was set up in 2020 and since then has been subject to warnings from organizations in New Zealand, Canada, the UK, and Germany.

Indeed, just last year, the Hungarian central bank issued a statement urging consumers to do their due diligence before putting any money into HyperVerse or HyperFund. It likened HyperTech to a “suspected pyramid scheme,” and claimed that the only source of income was payments from new entrants.

It also claimed that “there is a significant chance that investors may permanently lose part or all of their invested capital,” (via the Guardian).

Chainalysis estimates that HyperVerse alone has caused $1.3 billion in investor losses while The Guardian also estimates investor losses may also be in the billions.

Australia not yet suspicious of HyperTech

HyperVerse investors reportedly use crypto to purchase subscriptions that supposedly garner daily returns of 0.5% in so-called ‘hyper units.’ They’re also encouraged to climb the ranks through the recruitment of new members.

According to the Guardian, while the UK, New Zealand, Canada, Germany, and Hungary have all denounced HyperTech and its affiliated brands as unregulated and suspicious, Australia hasn’t.

FCA too slow on crypto enforcement, says UK’s spending watchdog