<i>U.S. securities regulators charge Sam Lee and Brenda Chunga over their involvement in HyperFund, a suspected crypto pyramid scheme.</i>

The U.S. Securities and Exchange Commission (SEC) has intensified its crackdown on crypto fraud, filing charges against key figures associated with HyperFund. Sam Lee and Brenda Chunga, also known as Bitcoin Beautee, face allegations of orchestrating a fraudulent scheme that amassed over $1.7 billion.
<h2>Promising High Returns: SEC Takes Action</h2>
The SEC has taken <a href="https://storage.courtlistener.com/recap/gov.uscourts.mdd.552894/gov.uscourts.mdd.552894.1.0.pdf" target="_blank" rel="nofollow noopener">legal action</a> against Sam Lee and Brenda Chunga, accusing them of promoting deceptive "membership" packages that pledged lucrative returns. The charges encompass fraud and violations of federal securities laws related to unregistered offerings.
<h2>Enticing Promises and Alleged Deceptions</h2>
Lee and Chunga allegedly enticed investors with promises of substantial profits supposedly generated through HyperFund's crypto mining operations and ties to a Fortune 500 company. However, the <a href="https://www.cryptoknowmics.com/news/crypto-security-report-2023-sees-27-78-drop-in-hacks-and-scams-despite-defis-vulnerability/" target="_blank" rel="noopener">SEC</a> contends that the primary thing mined by HyperFund was the investments of its unsuspecting participants.
<h2>Settlement for Chunga, Litigation for Lee</h2>
While Brenda Chunga has reached a settlement with the SEC, agreeing to a permanent injunction and financial penalties pending court approval, Sam Lee faces ongoing litigation initiated by the regulatory body. The SEC seeks various remedies, including injunctions, disgorgement of ill-gotten gains, and civil penalties.
<h2>Criminal Charges and HyperVerse Connection</h2>
In addition to SEC actions, the U.S. Attorney’s Office of Maryland has brought criminal charges against both Sam Lee and Brenda Chunga. Chunga has pleaded guilty to conspiracy to commit wire and securities fraud. Meanwhile, Lee, who is an Australian citizen residing in the UAE, and Chunga, residing in Maryland, confront the legal consequences of their involvement in HyperFund.

Moreover, Sam Lee is linked to another alleged crypto scheme called "HyperVerse," raising concerns about his involvement in multiple crypto-related schemes and the potential harm inflicted on unsuspecting investors. The SEC's move reflects an ongoing commitment to curbing fraudulent activities in the cryptocurrency space.

SEC Targets HyperFund Leaders in $1.7 Billion Crypto Fraud Case

The SEC's move reflects an ongoing commitment to curbing fraudulent activities in the cryptocurrency space.

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more
than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

SEC Targets HyperFund Leaders in $1.7 Billion Crypto Fraud Case

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