The US Securities and Exchange Commission (SEC) has filed a lawsuit against Sam Lee and Brenda Chunga, also known as Bitcoin Beautee, for alleged involvement in the HyperFund crypto scam worth over $1.7 billion.
The SEC accuses them of violating federal laws by promoting deceptive “membership” plans that promised large returns to investors.
Note that the duo is accused of misleading investors with false assurances of lucrative profits from HyperFund’s crypto mining activities and their purported affiliation with a Fortune 500 company. In a statement, the SEC emphasized that “the only thing they were mining was their investors’ pocket.”
Furthermore, Brenda Chunga has signed an agreement with the SEC, promising not to engage in illegal activities in the future and agreeing to pay fines. However, the court will determine the exact fines pending approval of the deal.
In contrast, the SEC is pursuing legal action against Sam Lee for alleged fraud and registration violations.
The regulatory body also intends to stop Lee’s involvement in similar activities, secure the return of illegally obtained funds, and impose additional penalties.
Aside from the SEC, the US Attorney’s Office in Maryland has charged Lee and Chunga with wire and security fraud, with Chunga admitting to her role in the scheme.
Furthermore, it has been revealed that Sam Lee is linked to HyperVerse, another potentially fraudulent venture targeting people in Asia, Africa, and the Pacific. The US SEC is investigating Lee’s potential involvement in additional cryptocurrency scams.