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Australian Regulator Faces Questions Over HyperVerse Crypto Scheme

ASIC Under Scrutiny for Failing to Warn Citizens

Australia’s Assistant Treasurer Stephen Jones is criticizing the Australian Securities Investment Commission (ASIC) for failing to warn Australian citizens about the HyperVerse pyramid scheme that has caused significant financial losses.

Countries like New Zealand, Hungary, Germany, Canada, and the United Kingdom issued warnings about HyperVerse as early as 2021, calling it a scam and suspected pyramid scheme. However, ASIC remained silent until the scheme collapsed in late 2023, costing victims millions of dollars.

HyperVerse reportedly sold worthless investment products, and Stephen Jones noted that ASIC should have flagged the operation as a risk to consumers. An ongoing investigation is looking into individuals associated with HyperVerse.

The HyperVerse scheme involved a membership model where clients paid for subscription packages and received rewards for recruiting new members. While some early investors successfully withdrew funds, later members incurred significant losses.

Another linked investment platform, We Are All Satoshi, promoted by a figure named Lee, was ordered to shut down by California regulators who classified it as a Ponzi scheme [dfpi.ca.gov/wp].

Reports suggest that HyperVerse CEO Reece Lewis does not seem to exist, with no verifiable records of his qualifications [TheGuardian].

Despite HyperVerse’s ties to collapsed firm Blockchain Global that owed $58 million, ASIC currently has no plans for legal action against HyperVerse.

Guardian Article

New Zealand Warning

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