Crypto Fraud Crackdown: SEC, DOJ Charge HyperFund Founders In $1.8 Billion Scheme
Summary
DOJ and SEC announced criminal charges against individuals involved in the HyperFund crypto Ponzi scheme. The scheme raised over $1.8 billion and collapsed in 2022, leaving investors unable to withdraw funds. The DOJ secured a guilty plea from one individual, while the SEC filed a civil action against two others. The defendants falsely claimed high returns from non-existent cryptocurrency mining operations. The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains, and civil penalties. One defendant has agreed to settle charges, while the other will be prosecuted.
