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$1.89 bn Cryptocurrency Scheme Busted By DOJ

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$1.89 bn Cryptocurrency Scheme Busted By DOJ 

The US Department of Justice has charged Australian citizen Sam Lee, Rodney Burton, and Brenda Chunga with orchestrating a $1.89 billion cryptocurrency fraud scheme through HyperFund. 

The indictment, unsealed, alleges that Lee and his co-conspirators lured investors with false promises of substantial returns from nonexistent cryptocurrency mining operations. 

The indictment outlines that from June 2020 to November 2022, Lee and his co-conspirators sold fraudulent investment contracts via HyperFund’s online platform, promising daily passive rewards leading to doubled or tripled investments. 

However, these claims were baseless, as HyperFund lacked the purported crypto-mining operations. The DOJ has increased its efforts in cracking down on cryptocurrency fraud, with recent high-profile cases, such as Miami’s Esteban Cabrera Da Corte’s 63-month prison sentence for participating in a $4 million fraud scheme.

(With inputs from Shikha Singh)

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