Australian securities regulators are currently conducting an investigation into Blockchain Global due to the suspected involvement of two of its directors in previous crypto schemes. The Australian Securities and Investment Commission (ASIC) is focusing its attention on the company’s directors, Sam Lee and Ryan Xu, following their alleged connection to a crypto scheme named Hyperverse. This follows an extensive report by a leading newspaper, which prompted ASIC to re-examine Blockchain Global’s liquidation report.
Despite an initial investigation in 2021 which did not result in any action taken by ASIC, the recent developments have reignited the regulatory body’s interest in the matter. The Guardian Australia’s report has uncovered significant losses associated with the HyperVerse investment scheme, raising concerns about its potential status as a scam or pyramid scheme.
The investigation has also revealed that early investors in HyperVerse were allegedly paid with funds from subsequent investors, while the company’s purported Bitcoin (BTC) mining operations were found to be non-existent. The estimated losses from HyperVerse in 2022 are reported to be approximately $1.3 billion, further underscoring the severity of the situation. Additionally, ASIC’s probe into the collapse of Blockchain Global has uncovered a potential connection to HCash, a cryptocurrency linked to the Hyper investment schemes.
According to reports, rewards accrued from earlier Hyper schemes were converted to HCash before being exchanged for other cryptocurrencies. The ongoing investigation has also highlighted the fact that Ryan Xu’s current whereabouts are unknown, while Sam Lee has not yet responded to the aforementioned report.
It is essential for investors and stakeholders within the crypto and NFT industry to stay informed and exercise caution when navigating the complexities of the market, especially in light of emerging reports and regulatory actions. Maintaining a proactive approach to due diligence and compliance with regulatory standards is paramount in safeguarding the integrity and stability of the industry.
