{"id":223800,"date":"2024-01-05T01:57:01","date_gmt":"2024-01-04T20:27:01","guid":{"rendered":"https:\/\/dripp.zone\/news\/asic-under-scrutiny-for-inaction-on-hyperverse-scheme-crypto-news\/"},"modified":"2024-01-05T01:57:03","modified_gmt":"2024-01-04T20:27:03","slug":"asic-under-scrutiny-for-inaction-on-hyperverse-scheme-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/asic-under-scrutiny-for-inaction-on-hyperverse-scheme-crypto-news\/","title":{"rendered":"ASIC Under Scrutiny for Inaction on HyperVerse Scheme – Crypto News"},"content":{"rendered":"

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Australia\u2019s consumer watchdog is reportedly under fire for not issuing a warning against the HyperVerse crypto investment scheme. The Guardian quoted<\/a> Assistant Treasurer Stephen Jones criticizing the Australian Securities and Investments Commission (ASIC). The agency was called out for its lapse even after international regulators flagged the scheme as potentially fraudulent.<\/p>\n

Also Read: \u00a0Crypto fraud allegations are brought on ACE exchange founder<\/a><\/strong><\/p>\n

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HyperVerse reported scam<\/h2>\n

A previous investigation by Guardian Australia also reported substantial losses to retail investors in the HyperVerse scheme. Additionally, the scheme was reportedly dubbed a probable \u201cscam\u201d and a \u201csuspected pyramid scheme.\u201d Chainalysis, in its 2022 analysis of crypto scams, highlighted HyperVerse in its report. It emerged as a top perpetrator by revenue, amassing nearly $1.3 billion.<\/p>\n

\u201cThis type of scheme works by convincing innocent people to invest their money into a product that might not exist, with the only source of income being money from new investors,\u201d Jones was quoted as saying.<\/p>\n

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Scheme chief is reportedly untraceable<\/h2>\n

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HyperVerse, part of the HyperTech group, lured investors with the promise of high returns. Their promised return on investment soon appeared dubious.<\/p>\n

The development also follows an investigation by Guardian Australia that suggested Steven Reece Lewis, the alleged chief executive of the potentially fraudulent HyperVerse scheme, maybe a fictitious person.<\/p>\n

Lewis, presented with an elaborate profile of achievements, reportedly remains untraceable. The previous report underlined that HyperVerse was promoted by Sam Lee and Ryan Xu. Both were Australian entrepreneurs associated with the now-defunct Australian bitcoin company, Blockchain Global, as per the report<\/a>.<\/p>\n

In light of the recent revelations and as investors deal with the consequences, attention is increasingly focused on how ASIC will refine its regulatory strategies to prevent similar incidents in the future. This concern is heightened<\/a> by a recent CertiK report that indicated that 2023 witnessed 751 security incidents, resulting in a loss of approximately $1.8 billion in digital assets.<\/p>\n

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