HyperVerse Hack

HyperVerse crypto hedge fund collapses, resulting in a loss of approximately 1.3 billion USD for investors in an exit scam.

HyperVerse, formerly known as HyperFund, was a cryptocurrency hedge fund that collapsed, causing significant losses for its investors. The fund was promoted by Australian entrepreneur Sam Lee and his business partner, Ryan Xu. The scheme operated under various names, including HyperFund and HyperVerse, and has been flagged by regulators overseas as a possible "scam" and "suspected pyramid scheme." Investors were asked to pay in cryptocurrency for subscription packages, with rewards accumulating in "hyper units" at a daily rate of 0.5%.

Similar to traditional pyramid schemes, members were also incentivized to recruit new members. While initial investors were able to cash out their hyper units, convert to other cryptocurrencies, or withdraw funds, many later investors lost their money. The total funds lost in this exit scam are estimated to be around 1.3 billion USD.