US Authorities Think Dubai Is Ripe For Crypto Scams, Pyramid And Ponzi Schemes

US authorities point out that many high-profile crypto scams are coming out of Dubai, according to a Bloomberg report. 

A high-profile ponzi scheme has come to light which involves Sam Lee, co-founder of HyperVerse, a company accused of orchestrating a $2 billion fraud. HyperVerse managed to escape scrutiny in both Australia and Dubai.

The case of HyperVerse is not an isolated incident. Other notable examples include OneCoin – a global ponzi scheme that scammed investors out of approximately $4.4 billion by promising massive returns through a non-existent cryptocurrency.

Explore: Dubai Tightens Regulations On Crypto Marketing

Scammers Include OneCoin, Bitconnect, GainBitcoin 

Another example is Bitconnect- a lending platform that collapsed in 2018 after defrauding investors of around $1 billion.

GainBitcoin is another example of a multi-level marketing scheme offering Bitcoin mining contracts that resulted in losses estimated at $2.7 billion.

These cases underscore the scale and sophistication of crypto scams operating in regions like Dubai.

Lee’s HyperVerse Has Already Been Charged By US Authorities

A high-profile pozi scheme has come to light which involves Sam Lee, co-founder of HyperVerse, a company accused of orchestrating a $2 billion fraud. HyperVerse managed to escape scrutiny in both Australia and Dubai.

The company promised daily returns of up to 1% through blockchain-based strategies but was allegedly nothing more than a sophisticated façade for an old-fashioned Ponzi scheme. The scheme relied on new investments to pay returns to earlier investors rather than generating profits from legitimate business activities.

Lee, an Australian citizen residing in Dubai, has denied the allegations, attributing any misuse of funds to others within the organization. 

According to a Guardian investigation, HyperVerse crypto scheme was promoted by the Lee and his business partner, Ryan Xu, two of the founders of the collapsed Australian bitcoin company Blockchain Global.

Despite US authorities charging him with securities and wire fraud, Lee remains unperturbed, claiming insufficient evidence against him.

Is the HyperFund Crypto Scam restarting as HyperVerse in Nepal?#HyperFundCryptoScam #HyperVerse #Nepal #Cryptocurrency #Restart #Investment #CryptoScam #HyperFund #HyperVerseRestart pic.twitter.com/6PhlMTv9bU

— ComplaintBox TV (@ComplaintBoxTV) October 4, 2023

Read more: New UAE Regulations Could Potentially Ban Crypto Payments, Says Crypto Lawyer Irina Heaver 

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