SEC Charges Individuals in $1.7 Billion Crypto Pyramid Scheme

Posted on March 18th, 2024 at 4:11 PM
SEC Charges Individuals in $1.7 Billion Crypto Pyramid Scheme

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (SEC) has filed charges against Xue Lee (aka Sam Lee) and Brenda Chunga (aka Bitcoin Beautee) for their involvement in the HyperFund crypto asset pyramid scheme, which fraudulently raised over $1.7 billion from global investors.

According to AdvisorHub, the SEC's complaint alleges that from June 2020 to early 2022, Lee and Chunga promoted HyperFund "membership" packages, falsely guaranteeing high returns from crypto asset mining operations and a supposed association with a Fortune 500 company. The SEC contends that Lee and Chunga were aware or reckless in not knowing that HyperFund was a pyramid scheme with no real revenue source other than investor funds. Following the scheme's collapse in 2022, investors could not withdraw.

The SEC seeks permanent injunctive relief, conduct-based injunctions, disgorgement of ill-gotten gains, prejudgment interest, and civil penalties. Chunga has agreed to settle the charges, while criminal charges have been announced by the U.S. Attorney's Office for the District of Maryland against both Lee and Chunga, with Chunga pleading guilty to conspiracy to commit securities fraud and wire fraud.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

January 9, 2026
FINRA Sanctions Former Wells Fargo Advisor for Profile Falsification and Unauthorized Trading

The Financial Industry Regulatory Authority (FINRA) disciplined former Wells Fargo Advisors broker James E. Holmes III for misconduct tied to his falsifying customer information and unauthorized trading.

January 8, 2026
Georgia Investment Advisor Pleads Guilty to Ponzi Scheme

A former Georgia investment adviser has pleaded guilty to wire fraud after federal prosecutors accused his firm of operating a multiyear Ponzi scheme that cost investors millions of dollars, as reported by Financial Advisor News.

January 7, 2026
FINRA Releases 2026 Regulatory Oversight Report, Spotlighting Private Placement Compliance Risks

The Financial Industry Regulatory Authority (FINRA) released its 2026 Annual Regulatory Oversight Report, responding directly to member feedback and reinforcing its stated mission to protect investors and promote market integrity.