According to Foresight News, the U.S. Securities and Exchange Commission (SEC) has accused HyperFund founders Xue Lee and Brenda Chunga of fraud and unregistered securities issuance. From June 2020 to early 2022, Xue Lee and Brenda Chunga, also known as Sam Lee and Bitcoin Beautee, raised over $1.7 billion from global investors, promoting HyperFund as a profitable investment opportunity in the mining business. However, it was actually a pyramid scheme with no real source of income, and the project collapsed in 2022, causing significant losses for investors.
Chunga has admitted to conspiring to commit securities fraud and wire fraud. She has also agreed to settle the charges and pay disgorgement and civil penalties in amounts to be determined by the court.