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How Sam Lee and Ryan Shu Ran a $1.8 Billion Crypto Fraud!

In 2014, Australian businessman Sam Lee and co-founder Ryan Shu claimed their Bitcoin mining company would become the first cryptocurrency-related company to go public on the Australian stock exchange. They planned to raise $20 million, but failed to achieve this due to the lack of capital required for an independent auditor report. Despite this, they rebranded the company to blockchain Global, which expanded beyond Bitcoin mining and founded a crypto exchange called ACX ended up being a fraud and shut down in 2020, leaving customers with $15 million in losses.

In summer 2020, they rebranded their company to Hypertech and launched an investment offering called Hyperf Fund. Hyperf Fund promised investors returns of 1% daily and raised $1.9 billion from investors. However, it was later discovered that Hyperf Fund was a Ponzi scheme, with investors losing everything.

In 2020, the Hyperfund market was booming, and the company launched its Hyperf Fund investment offering, claiming to be a leader in blockchain technology. However, the company’s commercials were highly produced and nonsensical, with no evidence of its bankruptcy or success.

Hypertech, a cryptocurrency company, claims to be engaged in large-scale crypto mining and owns a crypto exchange for transaction fees. However, their claims are often misleading. They were early adopters of Bitcoin but had to sell all their Bitcoin to pay for mining machines and electricity. Hypertech’s predecessor, blockchain Global, was also involved in large-scale Bitcoin mining but never profitable.

Hypertech launched ACX in 2017, which collapsed in 2020. They founded, another crypto exchange, which was mainly used by hyper fund investors. Hypertech’s main product offering was an investment opportunity called HyperFund, where members purchased memberships with daily rewards of between 5% and 1%. Affiliates promoted the power of compound interest, promising that if an investor invested $10,000, they would receive $2,000 per month or $24,000 per year.

The scheme was a giant Ponzi scheme that would collapse as soon as enough investors tried to withdraw their funds. HyperFund offered a referral program, where referring someone to join would earn 20% of the rewards. This pyramid scheme targeted unsophisticated investors who knew little about cryptocurrencies.

As investors started withdrawing their funds, HyperFund changed its withdrawal system to make it as complicated and difficult as possible to withdraw funds. This made it easier for people to leave their money in HyperFund, delaying its eventual collapse in Hyperverse.

In October 2021, Facebook rebranded itself as Meta and announced billions of dollars to build their virtual reality ecosystem, the metaverse. Hypertech, a company that rebranded itself as Hyperverse, released a trailer claiming to be working on a virtual reality video game with NFTs and play-to-earn features. However, this game was never developed. Hypertech appointed a new CEO, Steven Ree Lewis, who had a resume as a derivatives trader at Goldman Sachs and later founded a software company sold to Adobe. The Ponzi scheme continued to operate, offering investors returns of 1/50 to 1% per day and making withdrawals difficult. Hypertech then rebranded again, and in 2022, they changed their name to Hypernation, claiming to use blockchain to combat inequality. The Ponzi scheme collapsed in 2022, and criminal charges were announced against Hypertech co-founder Sam Lee and two Hyperfund affiliates, Brenda Chianga and Rodney Burton. Both were accused of knowing or being reckless in promoting a scam.

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