Australia’s Financial Services Minister and Assistant Treasurer, Stephen Jones, is preparing to confront the Australian Securities and Investments Commission over their lack of public warning about the cryptocurrency fraud known as the HyperVerse scam.
This fraudulent operation, HyperFund, defrauded approximately $1.3 billion and affected many countries, including the U.K., New Zealand, Canada, Germany, and Hungary.
In an interview with the Guardian, Jones expressed his bewilderment at ASIC’s silence, especially considering the size and scope of the scam.
He emphasized that HyperVerse was promoting investment products of no value, leading to losses for many Australians. Given the clear signs of fraudulent activity, the minister’s primary concern is why no warning was issued.
ASIC has been negative of digital currencies, often describing them as baseless assets. In September 2023, the commission launched a detailed four-year plan to safeguard consumers and businesses from digital frauds, specifically those involving cryptocurrencies.
Also Read: Australia to Introduce Legislation to Clarify Digital Currencies
While Jones did not clarify if ASIC would utilize all its powers to research the HyperVerse scheme, he suggested a more robust approach to regulating cryptocurrencies.
He stressed the importance of cutting off the avenues used to distribute these scams and imposing responsibilities on social media platforms to promptly remove fraudulent and misleading investment promotions.
HyperVerse was organized by Sam Lee, an Australian blockchain entrepreneur and chairman of the HyperTech group, the parent company behind this scheme. Zijing Ryan Xu, Lee’s business associate, was also important in this operation.
Both were involved with Blockchain, an Australian cryptocurrency that faced financial difficulties in 2021, leaving clients with almost $60 million in losses.
Chainalysis, specializing in blockchain analytics, revealed that HyperVerse was first scammed in 2022, collecting nearly $1.3 billion in early 2023. This report emphasizes the need for regulators like the ASIC to increase their efforts in fighting such fraudulent schemes.
Also Read: Crypto Scammers Adopting to Market Changes: Chainalysis
