In a surprising development, HyperVerse, an online investment platform known for its involvement in cryptocurrencies, is facing legal action over allegations of running a Ponzi scheme worth nearly $2 billion. Notably, the company is accused of hiring an actor to impersonate its CEO. These allegations have emerged from a lawsuit and criminal indictments filed by both the U.S. Securities and Exchange Commission (SEC) and a grand jury against two key figures within the organization.

The company, which also operated under various aliases like HyperFund, HyperCapital, and HyperTech starting from around June 2020, reportedly deceived investors worldwide by promising quick and substantial financial returns. According to the SEC, the masterminds behind this fraudulent scheme are Sam Lee, an Australian entrepreneur residing in the United Arab Emirates, and Brenda “Bitcoin Beutee” Chunga from Maryland.

Interestingly, HyperVerse enlisted the services of an actor named Steven Reece Lewis, based in Thailand and known for his work as a television presenter, to portray the role of CEO. The situation worsened when it became apparent that investor withdrawals were being funded with money from new investors, a classic hallmark of a Ponzi scheme. HyperVerse is currently not available for comment on these allegations.

Gurbir Grewal, the director of the SEC’s enforcement division, criticized the company, stating, “HyperFund enticed investors with promises of crypto asset mining profits, only to deplete their investors’ funds.” Chunga is reported to have pocketed $3.7 million for personal expenses, while Lee diverted $140,000 in digital assets to his personal accounts.

As a result of these accusations, Lee and Chunga are facing charges of conspiracy to commit wire fraud as per the indictment in the U.S. District Court in Maryland, along with allegations of offering unregistered securities. If they reach a settlement agreement, Chunga may face restrictions on certain activities and be subject to fines determined by the court.