Once celebrated as Australia’s “crown prince of Bitcoin,” Sam Lee is now in a legal scoop with both the SEC and the DOJ. The blockchain entrepreneur, who co-founded the HyperVerse and HyperFund crypto investment schemes, is facing fraud charges from the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). Prosecutors accuse him of running a $1.89 billion Ponzi scheme that defrauded thousands of investors worldwide.
Though the US has charged crypto entrepreneur Sam Lee with allegedly running a $2 billion Ponzi scheme, he’s denied any wrongdoing and is living in Dubai, launching new crypto products. And he’s not the only one https://t.co/r7PJXPITx9 pic.twitter.com/H0KXh3dzQO
— Bloomberg (@business) March 10, 2025
The SEC alleges that Lee and his co-conspirators operated a multi-level marketing scam disguised as a high-return crypto investment. From June 2020 to November 2022, investors were lured in with promises of guaranteed profits, but instead, their money was funneled into a fraudulent system. One of Lee’s key promoters, Brenda Chunga, has already pleaded guilty to conspiracy charges, admitting that HyperFund “mined” investors’ funds rather than cryptocurrencies. One analyst tracked his scam history. Here’s what happened so far.
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Crypto was supposed to be about freedom.Instead, it’s become a tool for Ponzi kings like Sam Lee.
Dubai’s billion-dollar scam industry isn’t slowing down.
Who’s next?
(Like & follow @nickolasnesen real crypto insights.)
— Nick (@nickolasnesen) March 12, 2025
A Web of Lies and Fake CEOs
Investigations have uncovered deeper layers of deception. Lee allegedly used a fake CEO to front the HyperVerse scheme, misleading investors about its legitimacy. He also had connections to the now-collapsed Australian crypto firm Blockchain Global, raising suspicions about his past dealings. The crackdown has ruined his reputation, and few now support him.
Arrest in Dubai – But Is Justice Coming?
In November 2024, Lee voluntarily surrendered to Dubai authorities following an Interpol Red Notice. He was detained for 60 days before being released, sparking speculation about whether he will ever face justice in the United States. The DOJ is charging Lee with conspiracy for securities and wire fraud, which could mean five years in prison. The SEC is also suing him for illegally selling unregistered securities.
A Defiant Stance
Despite the mounting legal trouble, Lee remains defiant. In a video interview with Bloomberg, he dismissed the accusations, claiming that multi-level marketing is legitimate and that U.S. regulators are simply trying to suppress crypto. He also praised Dubai’s regulatory environment, hinting at future ventures in the space. His closing remarks— “there are many exciting projects on the horizon”—have sparked concerns that he may already be plotting his next scheme. These fears have only grown stronger as a series of nine YouTube videos promoting his new venture have resurfaced.
Red Flags to Watch Out For
Sam Lee’s new venture shows worrying signs of another scam. He still relies on affiliate marketing and unclear token systems, just like past Ponzi schemes. Instead of taking responsibility for HyperVerse’s collapse, he brushes off legal charges and shifts the blame. His tactic of dismissing critics as dishonest while demanding loyalty is a classic scammer move. His vague promises and secretive plans make him even less trustworthy. With so many warning signs, investors should be very cautious.
For now, Lee remains in Dubai, possibly plotting his next crypto scheme. The big question is—are authorities paying attention?
