The U.S. Securities and Exchange Commission (SEC) has charged HyperFund with $1.7 billion in fraud and trading in unregistered securities.
The SEC explained that founders Xue Li and Brand Chung advertised HyperFund as an opportunity to invest in mining. However, it was just a pyramid scheme with no real sources of income, which eventually collapsed in 2022 and all its users lost money.
Chunga has already pleaded guilty.