Australian officials hold ASIC accountable for failure to warn about $1.3b HypeVerse scam
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Australia’s minister has questioned the country’s financial regulator, questioning why it did not warn consumers about a $1.3 billion cryptocurrency scam linked to Australia.
in a interview Stephen Jones, Australia’s financial services minister and assistant treasurer, told the Guardian he plans to ask the Australian Securities and Investments Commission (ASIC) about its failure to issue a consumer warning about HyperVerse, also marketed as HyperFund, which is a Crypto scam, too big arrive Countries such as the UK, New Zealand, Canada, Germany and Hungary will launch as early as 2021.
Jones stressed HyperVerse was peddling “worthless investment products” that were leaving many Australians in trouble. He also publicly questioned why no warning was issued and said the action was cause for concern.
“I have no idea why the warning was not issued at all. It’s clear that people should be concerned about … this operation.”
Stephen Jones
ASIC is known for its critical stance on cryptocurrencies, Announce Digital assets are “created from nothing, from the ether.” In September 2023, ASIC unveiled a comprehensive four-year strategy to protect consumers and businesses from digital scams, including those involving cryptocurrencies.
While the Australian official did not elaborate on whether ASIC planned to use all available powers to investigate the HyperVerse scheme, he hinted at an increased crackdown on cryptocurrencies, stressing the need to eliminate distribution channels and impose obligations on social media platforms to eliminate fraud and Counterfeiting. Investment promotion.
“It’s about eliminating distribution channels or locking down distribution channels and imposing obligations on social media platforms … to eliminate scams and false investment promotions – those are key.”
Stephen Jones
HyperVerse is organized by Australian blockchain entrepreneur Sam Lee, who is chairman of the initiative’s parent company, HyperTech Group. Li’s business partner Xu Zijing is also listed as the group’s founder, The Guardian reported. Both men are also directors of Australian cryptocurrency company Blockchain Global, which faced financial difficulties in 2021 and had nearly $60 million in customers.
In early 2023, blockchain forensics company Chainaanalysis report HyperVerse is the biggest scam of 2022, earning nearly $1.3 billion.
